Institutional Determinants of Monetary Sovereignty: A Case Study

Abstract

India’s situation illustrates the array of institutional arrangements and governmental policies that determine a state’s control over its monetary and financial affairs. This provides a useful framework for assessing where other states fall along a spectrum of monetary sovereignty. It also allows for an evaluation of the relative strength and vulnerability of monetary sovereignty and control in states that are perceived to be at the top of the monetary hierarchy. Thus, this analysis may provide a way forward to understanding a more complicated hierarchy of monetary sovereignty.