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Sovereignty and Monetary Integration

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European Republicanism

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Abstract

This chapter illustrates how monetary theory, especially the concept of the four functions of money (medium of exchange, unit of account, store of value and means of deferred payment), can be integrated into the concept of a hierarchy of nested social institutions and public goods. This approach emphasizes the link between sovereignty and money. Furthermore, it is argued that the introduction of the euro served mainly to integrate the third and fourth function of money (store of value and means of deferred payment). Theories of optimum currency areas (OCAs) that mainly focus on the second function of money (unit of account) and neglect issues of sovereignty are therefore not able to fully explain European monetary integration.

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Notes

  1. 1.

    The introduction of a common currency, like the euro, means therefore also to enter a community of values.

  2. 2.

    However, many commentators do not seem to have been aware of this fact during the euro crisis.

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  1. Cologne, Nordrhein-Westfalen, Germany

    Thilo Zimmermann

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Zimmermann, T. (2019). Sovereignty and Monetary Integration. In: European Republicanism . Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-25935-8_8

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  • DOI: https://doi.org/10.1007/978-3-030-25935-8_8

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