
© Reuters / David Cheskin
Better Together leader Alistair Darling (L) and First Minister of Scotland Alex Salmond debate over Scottish independence at Kelvingrove Art Gallery and Museum in Glasgow August 25, 2014.
Nobel laureate Joseph Stiglitz said the anti-Scottish independence campaign is "bluffing" in its scaremongering over the nation's currency. His comments underscore a resounding pre-referendum debate victory for Scotland's pro-independence leader.
Ahead of the televised debate between First Minister Alex Salmond and the pro-UK campaign leader Alistair Darling on Monday night, Stiglitz told an audience at the Edinburgh International Book Festival that the three main UK parties were "bluffing" when they ruled out Scottish National Party (SNP) calls for a post-independence currency union.
All three main parties in Westminster reject the notion of a shared currency union with an independent Scotland. Carwyn Jones, the Labour First Minister of Wales, said he would "strongly oppose" a currency pact.
"For the most part, I think these are bluffs," Stiglitz said. "Whatever the outcome, there's going to be a negotiation and people are going to be looking at what's in the best interests of both parties, and there will be negotiations."
"I have been a little bit shocked at how much of it is based on fear, trying to get anxiety levels up and how little of it has been based on vision," the US economist added, suggesting Scotland could still prosper even if it had to use the pound without a pact or if it established its own currency.
"There are many currency arrangements that can work," he said. "I think this is a lot of to do about nothing."
Stiglitz, a former World Bank chief economist and chairman of the Council of Economic Advisers to then-US president Bill Clinton, offered Salmond some useful ammunition during the final televised debate of the referendum campaign.
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