Denseman on the Rattis

Formerly known as the Widmann Blog

economicsen

The pound since I moved to Scotland

I always find it hard to remember the £/€ exchange rate because it’s always about stuff after the decimal point (my brain is a bit funny in that way), so I tend to prefer to keep track of the state of the Pound Sterling in terms of Danish crowns instead (the exchange rate of the latter is tied to within 2.25% of the euro through the ERM-II mechanism).

When I moved to Scotland, I could buy slightly more than 12 crowns for a pound, but it’s now been closer to 8 for a long time:

I wonder whether I would have accepted my first job in Scotland if the exchange rate had been 8 instead of 12 – a monthly salary of DKK 18k sounds a lot less attractive than DKK 27k, and I think my employer would have found it much harder to justify paying me a salary of £40,500 rather than £27k. To be honest, I probably would have ended up somewhere else instead.

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