Scotonomics

28/11/2025

Scotland's Economics Festival officially launches on Monday. Please do follow and like the page and share all the events once they are posted.

Thursday's session are already on the page.

https://www.facebook.com/profile.php?id=61584079245130

Look out for further details.

Scotland’s Economics Festival is a unique, public-facing celebration of BIG economic ideas.

26/11/2025

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 international markets that it is a stable destination for more foreign investment.

In this live Q&A, William and Jim will cover every aspect of the decision by the SNP-led administration (assuming they are returned to lead the government in 2026) to borrow £1.5 billion from money markets rather than from the UK Treasury - via the National Loans Fund.

There has been significant coverage in the mainstream media and many social media comments.

We aim to give the definitive answers to questions about the decision. We will no doubt cover:

- The background and limitations on Scottish Government borrowing
- Why has this decision been made now?
- Who advised the Scottish Government to go down this route?
- Will this cost more than borrowing from the NLF?
- Were there any other options available?
- How have the bonds been rated?
- What does this tell us about the Scottish Government's view of credit agencies?
- What can we learn about the plan for independence?

And much, much more.

Join us live. And submit your questions in the comments now.

Background reading:
William's article: https://scotonomics.org/scottish-government-new-bonds/

Jim's article:
https://bylines.scot/news/economics/the-scottish-government-kilts-progress-or-false-dawn/

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25/11/2025

Why so much abuse for anyone who suggests things could be better? Scotonomics newsletter - https://mailchi.mp/scotonomics.scot/a-few-made-weeks-or-13052746

25/11/2025

From a European professor of economics, I know. "I'd say Polanski is promising... but my god, the reactions of British fiscally conservative people is a disaster, they are just so nasty. I guess it's because he is the first politician in a while to challenge what had become a consensus."

23/11/2025

My two boys watching a mainstream politician say that "the government's finances are nothing like household finances"

I hope 100,000s of other parents and kids and paying as much attention. Zack Polanski on BBC today saying the above. And why is the government not like a household?

When the government spends it increases our financial wealth.

When is spends it creates new currency (taxes don't fund expenditure).

"Borrowing" is simply swapping one government financial liability (reserve balances) for another (bonds) primarily as an accounting tool.

The government sets the interest rate, amount and timing of this asset swap.

As long as resources are available at current prices there is no danger of a high debt to GDP ratio having any negative impact on the economy, with one exception.

High interest rates increase income inequality. (Interest rates offer a UBI for the ultra wealthy).

In the last year £160 billion has been paid on interest on government debt because the UK government CHOOSE to issue this level of debt, at the wrong time and at a high interest rate.

***These are government policy choices.***

Simple decisions would save £10s billions each year.

If the roof seems to be falling in on the UK it is because the government choose to make it happen.

Politicians have the power. Don't believe for one minute that they must manage the economy like your home.

The mess we are in is because they believe that exceptionally damaging analogy.

Zack gets it. And hopefully other politicians will be bold and brave enough to admit it too.

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.