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Democratic governments may choose any sort of monetary system--dollarization, currency boards, joining a currency union, even an entirely private-market monetary system--without sacrificing "sovereignty." That's what it means for sovereignty to reside "with the people." 1/2
16.7. klo 15.35
@tonywestonuk This it's often suggested that a government that dollarizes, resorts to a currency board, or takes part in a currency union sacrifices its political sovereignty by so doing--an emotional appeal that makes no sense if the decisions in question are reached by democratic means.
That is why, in a democratic context, when anyone objects to any of these alternatives by complaining that they necessarily involve a sacrifice of "monetary sovereignty," they are talking nonsense.
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