Mr Osborne said an independent Scotland would be forced to adopt new currency arrangements that would be a “very deep dive into uncharted waters”.
He said the people of the rest of the UK would be unwilling to grant a Scottish government a veto over its monetary policy, as the proposed currency union would entail.
Launching a new report from the Treasury in Glasgow, Mr Osborne said: “The fundamental political question this analysis provokes is this – why would 58 million citizens give away some of their sovereignty over monetary and potentially other economic policy to five million people in another state?”
“Would a newly independent Scottish state be prepared to accept significant limits on its economic sovereignty? To submit its economic plans to Westminster before Holyrood?”
The Telegraph has the full article