National currencies: endangered species or power instruments of the state?
With the financial globalization process, the geography of money and the social relations that are within it transformed. National currencies as integral part of the states’ financial and economic infrastructure are no longer associated with a particular territory as well as are “no longer the instrument of an exclusive national sovereignty” (Cohen, 2004, 1). This process is driven by different forces that determine the financial system today, where capital flows, trade, technology, institutions and new form of money challenge the control of the state over national currencies within its borders and question its function in the system.
This paper thus suggest that national monopoly currencies are still a solid and prevailing instrument for economic and monetary leadership and power of the modern state, where sovereign authorities, rather than loosing its autonomy and influential power in the international financial market, are going through a reconfiguration process regarding the relationship between the state and a particular territory. In this context, rather than being “endangered species”, national currencies are going through a reconfiguration process that requires a redefinition of the geography of money.
Fuente:
Biblioteca Virtual Banco de la República
Formatos de contenido:
Artículos
