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I would like to explore how much of a consensus there is regarding the term "monetary sovereignty" and how precise we can articulate it. The broad concept being:

The power of the state to exercise exclusive legal control over its currency.

I'm aware of the following tools the state can bring to bear:

  • legal tender status: i.e. USD = ok, bitcoin = not ok.
  • issuance and retirement of legal tender

Question

Is there an existing ordinal scale to measure how much monetary sovereignty a state has? If not, would it be heretical to devise one of my own? I begin to wonder if a state can do those two things above, maybe that would be a strong case for said state to be at the top of such an ordinal scale, but do advise if there are other litmus tests that would be relevant.

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  • $\begingroup$ The only definition I am aware of being used is the concept of “currency sovereignty” in Modern Monetary Theory. Your suggested points do not capture the concept, which is more about freedom from pegging the value of the currency to an external instrument (gold, foreign currency). $\endgroup$ – Brian Romanchuk May 18 '19 at 12:35

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