Dr. Steffen Murau| steffenmurau.com

2023 | ‘Rethinking Monetary Sovereignty. The Global Credit Money System and the State’ (with Jens van ‘t Klooster), Perspectives on Politics OLD

This article proposes a conception of monetary sovereignty that recognizes the reality of today’s global credit money system. Monetary sovereignty is typically used in a ‘Westphalian’ sense that simply denotes the ability of states to issue and regulate their own currency. This article rejects the Westphalian conception. Instead, it proposes a conception of effective monetary sovereignty that focuses on what states are actually able to do in the era of financial globalization. It fits the hybridity of the modern credit money system by acknowledging the crucial role not only of central bank money but also of money issued by regulated banks and unregulated shadow banks. These institutions often operate ‘offshore’, outside a state’s legal jurisdiction. Monetary sovereignty consists in the ability of states to effectively govern these different segments of the monetary system and thereby achieve their economic policy objectives.

Presentation at the International Studies Association’s annual convention, Toronto (03/2019) and the and at the Prospects of Money workshop at Hamburger Institut für Sozialforschung (01/2020)

Co-author:
Jens van ‘t Klooster, University of Amsterdam

Download link:
SocArXiv

Related articles

New publication on shadow money theory

28 May 2020 | The Private Debt Project, a Philadelphia-based online journal, has published a piece that analyses and systematizes different current shadow money theories. In their co-authored piece, Steffen Murau and Tobias Pforr argue […]

Learn More

New IFAIR Impact Group on the future of the international monetary system

17 Aug 2020 | IFAIR’s Impact Group ‘Future of the International Monetary System’ is looking for new team members to work on interactive online tool representing the Offshore US-Dollar System. The structures of the international […]

Learn More

‘Re-assessing Fragmentation of the Euro Area Banking System. Offshore Channels for Cross-Border Banking Activities’ (with Iñaki Aldasoro and Torsten Ehlers)

It is an established assessment that since the Eurocrisis, the Euro area banking system has been fragmented. Representing the Eurozone’s monetary architecture as a web of interlocking balance sheets, we carve out four different types […]

Learn More