A CURRENCY union would benefit the remainder of the UK more than an independent Scotland, according to a veteran economist.

It would actually be in Scotland's greater self-interest to use the pound unilaterally but a currency union would benefit both sides of the border, Professor David Simpson said.

The Harvard-educated economist, who has worked for the United Nations, World Bank, European Commission and Standard Life, rejects the argument that a currency union requires a political union to work.

The absence of a central bank with lender of last resort facilities is "an advantage, not a disadvantage" as it discourages the risky behaviour that sparked the recent banking crisis, he said.

Prof Simpson's written evidence to Holyrood's Economy Committee is backed by Edinburgh University politics professor Charlie Jeffery, who said a currency union is "perfectly feasible".

The committee will also tomorrow hear from Glasgow University professors Jo Armstrong and John McLaren, who have called on the Scottish Government to spell out how it will boost Scotland's productivity, save oil revenues without cuts or taxes and how much borrowing it would require.

Institute of Fiscal Studies director Paul Johnson will also outline the institute's latest economic forecast, which offers "good news" for an independent Scotland provided it continues with the UK Chancellor's spending squeeze.