The ‘Gänseliesel’ (Goose Girlis), a historical fountain erected in 1901, represents the most well-known landmark of the city of Goettingen.

An Unusual Suspect? Monetary Sovereignty and Financial Instability

An Hertogen



This article argues that, in an increasingly interdependent world, a state’s exercise of its monetary sovereignty through its monetary management policies (monetary policy, exchange rate policy and credit creation regulation) can affect financial stability abroad. Rather than looking for multilateral regulation of monetary management policies, this article argues that the rights and obligations stemming from sovereignty need to be rebalanced to ensure that state sovereignty becomes more compatible with increasing interdependence.


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