The phrase 'monetary policy' has a specific meaning in economics. If the quote is taken literally, then the concern lies with ensuring that ultimate control ov

The phrase 'monetary policy' has a specific meaning in economics. If the quote is taken literally, then the concern lies with ensuring that ultimate control over the size of the money supply, interest rates, and inflation lies with government and not with the private sector. Privately-issued currencies not backed by central banks are extremely vulnerable to liquidity crises (bank runs) and other failures. See the economic situations that lead to the establishment of central banks in most countries for examples. If private, unbacked, currencies became widely used, internal crises could trigger recessions in the real economy. Most governments would rather avoid this risk by disallowing the establishment of substantive independent monetary systems.