Krugman to Scotland: Be very afraid.

[muriel_volestrangler]

9. Currency union with independent Scotland unworkable, says Bank chief

The governor of the Bank of England, Mark Carney, has said a currency union between an independent Scotland and the remainder of the United Kingdom would be incompatible with sovereignty, dealing a blow to Scottish nationalists ahead of next week's referendum on independence.

Speaking in Liverpool to the Trades Union Congress, Carney said a successful currency union would require a Scottish government to go further than countries in the eurozone have so far managed to make the joint venture work.
...
Carney spelled out how cross-border ties on tax and spending as well as on banking rules would be needed as a prerequisite for any deal.

Without water-tight agreements to limit public spending deficits alongside rescue plans for banks and savers in the event of a crash, he said a currency union would be unworkable.

http://www.theguardian.com/business/2014/sep/09/currency-union-independent-scotland-unworkable-bank-governor