Monetary sovereignty

Monetary sovereignty is the power of the state to exercise exclusive legal control over its currency, broadly defined, by exercise of the following powers:

  • Legal tender – the exclusive authority to designate the legal tender forms of payment.
  • Issuance and retirement – the exclusive authority to control the issuance and retirement of the legal tender.[1]

Incidence of monetary sovereigntyEdit

Currently, nations such as the USA and Japan, which have autonomous central banks are said to exercise a high degree of monetary sovereignty. On the other hand, the European Union nations within the Eurozone, have ceded much of their monetary sovereignty to the European Central Bank.[2]

ReferencesEdit

  1. ^ "The Legal Aspect of Money" by F.A. Mann, 5th edition, Oxford, 1992, pp. 460-78
  2. ^ Cohen, Benjamin J. (2000). The Geography of Money. Cornell University Press. pp. 47ff. ISBN 978-0801485138.