Putting aside the obvious democratic deficit that independence removes, what we also want to achieve is better schools, hospitals, research and development, infrastructure, public transport, policing and more. We want a better quality of life. Yet with every debate around independence there is always one factor that concerns individuals. The cost.
Is MMT the solution?
This well-researched blog explains Modern Monetary Theory and its application to Scotland.
"So what is Modern Monetary Theory? MMT quite simply talks about how the “fiat” money system works. The theory examines models in countries like the UK, US, Japan, Russia, China, Australia, Canada and Switzerland, because they all have their own currencies from their own central banks. They can create their own currency in the forms of notes, coins and simply using keystrokes on their laptops with transfers between banks (most global transactions are done online anyway). Key here is understanding that it is impossible for these countries to go bankrupt in regards to their own currency. This is quite different from other countries in the Eurozone, such as Greece, where they are unable to create their own currency. Eurozone nations share the same currency, the Euro, which is controlled by the European Central Bank. They do not have their own individual currency producing central banks.
Countries with their own central bank have one special advantage; they don’t have to first collect money before they can spend. This allows the government to purchase goods and services from the private sector, without needing to raise/tax money first. This also goes for spending on the NHS, education, police services, infrastructure or whatever they so desire. It is after this spending occurs that the government can collect taxes from the private sector.
Could an independent Scotland lead the way with Modern Monetary Theory? It’s certainly not a theory that must be adopted in order to win another independence referendum. Other arguments though, such as highlighting the democratic deficit in the UK, are more important. The last thing I want to suggest is that “think my way or we’ll lose”. But MMT is certainly worth considering in the long term after a transitional period and markets resettle after a Yes vote. As John Maynard Keynes did say; “In the long run we are all dead.”
We must keep tipping the arguments on their heads, keep digging into reality economics. Once we grasp the basics of Modern Monetary Theory then we’re already doing better than most politicians. And that’s definitely a good thing."