Scotonomics

17/11/2025

Credit ratings, bonds and snoozefests.... this week's Scotonomics newsletter - https://mailchi.mp/scotonomics.scot/a-few-made-weeks-or-13052595

15/11/2025

"By borrowing from the financial markets, the Scottish government seeks to reduce its financial obligations to the UK government."

Read more:

By borrowing from the financial markets, the Scottish government seeks to reduce its financial obligations to the UK government. Soon, the Scottish government will issue its own bonds. As outlined in the Scottish Government announcement, it is the first step for Scotland to demonstrate to internatio...

15/11/2025

A post on the decision from the Scottish government to issue bonds is coming this afternoon:

"The decision to issue bonds is really a decision to switch lenders. In one sense, it is a lot of hot air about nothing much. Instead of borrowing from the UK Treasury, the Scottish Government will borrow the same amount (a tiny 0.25% of GDP) from international financial markets."

14/11/2025

William had meetings with politicians, journalists, and policymakers this week in England, Scotland, and Wales. He uses this simple two-chart framework to 'explain' our economy. We end up with the policies we have because of the Neoliberal Austerity paradigm (see below).

And here is the alternative: The Wellbeing Paradigm (also below).

This shows us that if we want to change everything, then we have to change everything.

He is encouraged that there are many progressive people in power who now seem to grasp the scale of the change. Gradualism is dead.

06/11/2025

The economics of an independent Wales. In conversation with Plaid Cymru's Mark Hooper. https://mailchi.mp/b9c4fbe8c38d/important-info-for-fridays-economics-event-13052434

06/11/2025

A clip from William Thomson's presentation at the Scottish Currency Group Annual conference a couple of weeks ago. Full presentation available here: https://www.youtube.com/watch?v=YSMCCkYZC-E

There is an alternative to the neoliberal/austerity mindset that underpins the current Scottish Government plan—a plan that has barely changed since 2014.

06/11/2025

Upon independence, the current Scottish government's plan risks undermining the very purpose of independence: the ability to design institutions tailored to Scotland’s needs.

Assuming Scotland becomes independent within the next few years, it would likely take at least a decade before it could formally join the EU. Aligning institutions too readily with EU frameworks from the outset would mean forfeiting the flexibility to create institutions that serve Scotland’s best interests in the early years of independence. An independent Scotland requires fiscal flexibility, not self-imposed rules from a bloc it does not yet belong to.

The Scottish Government argues that independence will allow Scotland to “tailor policy to Scotland’s needs; build greater equality and wellbeing; and become more resilient” (Scottish Government 2022, p. 6). We fully agree—this is the fundamental case for independence. An independent Scotland has all of the necessary resources, skills, and institutional capacity to enable its citizens to prosper.

This paper, on which this presentation is based, demonstrates the value of rigorous, independent research into how economic choices, especially those made in the early years of independence, will influence Scotland’s long-term prosperity.

Upon independence, the current Scottish government's plan risks undermining the very purpose of independence: the ability to design institutions tailored to ...

06/11/2025

Scotland's Economics Festival - Packed with MMT speakers. - http://eepurl.com/jrjF3Q

05/11/2025

Beyond the Union?

Many voters in both Scotland and Wales seek to gain independence from the same Union. But the similarities don't end there.

Some thoughts from William!

History of Colonial Conquest and Resource Extraction: Both nations share a history of colonial conquest and resource extraction.

Progressive Ideals: Progressive ideals underpin both independence movements.
Social Movements: In both Scotland and Wales, independence is a social movement.

Aim for a Prosperous, Fair, and Just Society: By becoming independent, both movements aim to create a more prosperous, fair, and just society.

Need for Significant Public Expenditure: Both nations are in desperate need of significant public expenditure, especially in transportation, telecommunications, housing stock, and infrastructure to support electrification.

Potential for Monetary Sovereignty: Both nations can be empowered by insights from Modern Monetary Theory (MMT) to become monetary sovereign governments, issuing their own currency on the day of independence.

Regulation of Financial Services: After independence, both governments will regulate their own financial services sectors, which can be designed for public purpose rather than profit.

Challenges Ahead: Both new nations will face challenges, including building self-sufficiency, withstanding price swings in international commodity markets, and building energy, food, and technological sovereignty.

Join William, Kairin, and guest Mark Hooper.

03/11/2025

Delighted to announce that we are coordinating Scotland's Economics Festival in Leith over March 19-21.

Partner organisations include: WEAll - Wellbeing Economy Alliance in Scotland, David Graeber Institute, Future Economy Scotland, Democracy Collaborative, Scottish Left Review, Balanced Economy Project, Verso Books, Adam Smith Global Foundation and The BREAK-Down.

You can book tickets for over 75% of the sessions now. Concession prices start at only £5!

https://www.tickettailor.com/events/scotlandseconomicsfestival

03/11/2025

Scotland's Economics Festival, Leith 19-21 March - https://mailchi.mp/01102ec96779/scotlands-economics-festival-leith-19-21-march The festival brings together leading economists, commentators, campaigners, and curious citizens to explore BIG economic ideas.