Do you want an input in setting rates with that burger mate?

Whilst on the topic of dodgy economics:

In a letter responding to the Liberal Democrats in Scotland Mervyn King says if Scotland kept the pound, the bank's monetary policy committee may set rates with no input from north of the Border.

The Liberal Democrats initiated the correspondence with Mr King seeking clarification on a number of issues relating to the economy in an independent Scotland. They say the content of Mr King's reply was evidence of the "fantasy economics" which underpinned the SNP's independence plans.

However, the SNP dismissed the correspondence as a "typically silly attack".

Ronald MacDonald*, taking time out from sorting me out with a Chicken & Bacon Supreme and fries, agreed and "said an independent Scotland would have some input in setting rates, if it produced the expected monetary union arrangement, like many countries in the euro area".



* In his spare time this Ronald is also an Adam Smith professor of political economy at Glasgow University and I think, given the recent quality of posts, we are drawing towards closing down for the year;) Still, thanks to AA for the alert!