Monetary sovereignty

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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 sovereignty

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]

References

  1. "The Legal Aspect of Money" by F.A. Mann, 5th edition, Oxford, 1992, pp. 460-78
  2. Lua error in package.lua at line 80: module 'strict' not found.

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