Articles

• Zimmermann, Claus D.

Abstract

Few legal concepts have been subject to as little critical scrutiny over the past few decades as that of monetary sovereignty. This stands in contrast to the renewed interest in different aspects of broader concepts of sovereignty. Filling this important gap in the literature, this article examines whether the concept of monetary sovereignty is subject to evolution under the impact of globalization and financial integration. This article fully takes into account the dual nature of monetary sovereignty as a concept with not only positive but also important normative components. It is argued herein that the concept of monetary sovereignty is more than a mere framework for debates on rights and duties of states, but that it is still relevant as a legal concept for evaluating the contemporary exercise of sovereign powers in the realm of money and for improving our understanding of the driving forces behind the evolution of the law in this crucial field. After a review of the conceptual foundations of monetary sovereignty, this article assesses its conceptual evolution under the impact of contemporary constraints on its exercise, and examines the main implications of the proposed new understanding of monetary sovereignty, with its normative components providing normative guidance and serving as a legitimacy benchmark.