The BBC headlines and the Currency Shenanigans

The BBC is getting it all wrong again. To the extent of misrepresentation. The headline they have is:

Independence vote: 'Yes' means no Scottish pound, says Osborne
http://www.bbc.co.uk/news/uk-scotland-scotland-politics-26166794

No it doesn't.

1. First of all, an independent Scottish currency could be called the Pound, after all that's what it was called before 1707. Several countries call their currency the Pound. Ireland did from 1928 until they joined the Euro, changing over to Euro coins and notes in 2002. (Irish pound in English, Punt Éireannach in Irish).

Were Scotland to opt for a separate currency it would probably be called the Scottish Pound (in English), or Pund Scots (in Scots). So if Osborne gets his way, that means there would be a Scottish pound. (It's only if he doesn't that there wouldn't).

2. Even if the headline means Pound Sterling, it is still wrong. Scotland could use Sterling without formal currency union, all that would mean is that the Bank of England would not be the lender of last resort, and there would be no financial or fiscal regulation by the central bank.

3. What Osborne is actually saying is that he will veto formal currency union, effectively he will not let Scotland use the Bank of England as a lender of last resort.

4. Several commentators (including former Scottish Labour leader Henry McLeish) don't believe him anyway: there are good reasons he would reverse that post Yes. The SNP certainly says it thinks he will change his mind if there is a Yes vote.

From that BBC link:

Labour's former Scottish First Minister Henry McLeish criticised the intervention by the three pro-union parties, and said Scots "shouldn't be fooled" by the suggestion that a currency union could not be worked out.

He told BBC Scotland: "This is entirely political and of course consistent with the unionist campaign. This is negative, it is about spreading fears and scare stories.

"What we require from the unionist parties is a bit of statesmanship and quite frankly their behaviour so far falls well short of that."

Iain Macwhirter, in the Herald, says that the Bank of England "doesn't want a separate currency in Scotland undermining the UK balance of payments". The Bank of England Governor, Mark Carney, made it quite clear he would make currency union work if that's what both parties wanted.


So, BBC, please aim for more accuracy in your headlines and reporting.

UPDATE: the headline has now been changed to the more accurate "Yes vote 'means no money union'". Good. Missed the morning rush, though.