Nobel Laureate Krugman on Scottish independence

//Nobel Laureate Krugman on Scottish independence

Nobel Laureate Krugman on Scottish independence

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New York TimesScots, What the Heck? and its follow-up: Scotland and the Euro Omen

Articles published: Sep 7 and 8, 2014 – out of date: no longer suitable for your IB Economics commentary

IB Economics syllabus: Section 3, International Economics

In just one week, on Sep 18, 2014 Scotland will hold a referendum about their independence from the United Kingdom. Their new government would then have control over fiscal policies and they plan to keep using the GBP (pound sterling) as their currency. As we all know, however, the money supply is controlled by the central bank and in this case this  central bank is sitting in London and is called the Bank of England. In the first article Krugman points out the danger of having your money supply controlled by a foreign central bank without fiscal integration and in the second one he uses the example of the Eurozone to further prove his point. He draws our attention to the fact that the Eurozone is now worse off than it used to be after the Great Depression (check diargam). Great articles for commenting on economic integration, but make sure you include relevant and useful diagrams.

Source of image: Imaginechina via AP Images

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By | 2017-08-23T11:03:31+00:00 September 11th, 2014|International Economics|Comments Off on Nobel Laureate Krugman on Scottish independence

About the Author:

My name is Daniel Szekely and I work as an IB Economics tutor, examiner and teacher. Having earned an MA degree in Economics at the University of Aberdeen, I started my career as a financial analyst at Morgan Stanley, one of the largest investment banks of the world. Yet, despite the promising career prospects of the banking industry, I decided to make a larger social impact by becoming a teacher. Currently, I teach IB Economics at SEK Budapest International School and have been an examiner for over 6 years. I started EconDaddy as a simple blog to share great articles with my students and others taking IB Economics around the world to use for their commentaries. Being a practicing IB Economics tutor, I have first hand insight into the most common mistakes of students, so the EconDaddy blog now also provides exam and commentary writing tips.

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