This paper is concerned with the case where an independent Scotland is a member of the Euro zone, while the rest of the United Kingdom (denoted hereafter as RUK) stays out. There are two main aspects to this scenario. There are the transitional aspects, and there are also long-run implications: in particular, what sort of economic future could Scotland expect once the transitional phase was over. Both of these aspects are vitally important. There is a danger, however, that the difficulties associated with the transition phase (which would involve the problems of leaving one monetary and political union to join another monetary union) appear so overwhelming that they squeeze out consideration of what Scotland's long-run prospects would be, assuming the transition had been successfully completed. To avoid this danger, the paper concentrates on the economic aspects of a scenario whereby Scotland might leave the UK monetary union, and translate into a fully fledged member of the Euro zone. However, the paper does not go into the complex legal and political difficulties which would be associated with this transition. This approach is justifiable on the grounds that only if there is a feasible economic transition route, and only if the long-run prospects looked inviting, would it be worthwhile embarking upon consideration of the legal and political difficulties of the transition. The structure of the paper is as follows: