Many will have missed this but last evening the SNP announced the results of a vote for their ruling NEC. Most of the heat generated in this election has been centred on the battle between those who have a different view on the tactics for independence as well as bitter schisms on a variety of gender and social policies. This blog has no comment to make upon these issues however these elections also mark another significant shift (in Policy Development appointments), specifically towards those who disparage the Sustainable Growth Commission report and are excited about the possibility on a MMT (Modern Money Theory) policy proposal for Scotland. If you haven’t heard about this, you will soon.
You will be told that an independent Scotland will start with no debt, should set up its own central bank immediately, should set up its own currency immediately, can print unlimited paper money (subject to “real resource” constraints), and should run a larger fiscal deficit. MMT is a complex area and, to some extent, it builds on existing economic theory.
Whatever, it is vital that a proper understanding in this area is built up. There is already evidence that the above sound bytes will soon flood into he public domain. As I said previously this is a very seductive theory. It suits proponents to use Scotland as a test case for their long held (but not widely accepted) theories. These proponents are also active in the USA (through the Bernie Sanders campaign). It also suits Scottish Nationalists who are absolutely desperate for a silver bullet economic narrative to sell their politics.
Sensible debate is required and access to the right information essential – For example the fact that the upcoming economic proposals rule out E.U. membership. I make no comment on this at this stage but insist that whatever emerges we are as clear as possible on the risks and implications.
Finally, I want to make it clear that, in my view, Scotland needs ideas and needs radical economic change so irrespective of where we end up on MMT we should have the confidence to examine it and any other proposals without pre-judgement.
Make Scotland Better 