Monetary and fiscal policy in a newly independent Scotland : lessons from the dissolution of Czechoslovakia?

Brocek, Frantisek (2018) Monetary and fiscal policy in a newly independent Scotland : lessons from the dissolution of Czechoslovakia? Fraser of Allander Economic Commentary, 42 (3). ISSN 2046-5378

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    Abstract

    Abstract: This paper looks at the creation of the Czech Republic and Slovakia and its transitionary monetary union to illustrate the challenges - and opportunities - that a newly independent Scotland might face. The paper provides a background to the economic consequences of the dissolution on both the Czech Republic and Slovakia, their divergent paths in terms of economic policy and growth and the reasons why their monetary union was short-lived. The lessons from this experience are then drawn with regard to the issues that might face a newly independent Scotland, were policy to follow the recommendations of the recent Sustainable Growth Commission report. Though not strict parallels, the economic experience of the dissolution of Czechoslovakia does have some lessons for a newly independent Scotland to consider.