4 ms·

Why not? We have this notion that currency is managed in a super-political way. However, there is everything political with currencies and currency management.

Why not? We have this notion that currency is managed in a super-political way. However, there is everything political with currencies and currency management. It is literally the difference on depression and labor shortage. For me, it is weird that this responsibility is deferred from political processes and the democracy. If a sovereign country wants to own its own politics, it also need to own its own currency.

brnt 3y ago
Yes, but at the same time nobody exists in a vacuum, especially not small countries like Denmark in highly globalised economies. Collaboration on something like the Euro makes small countries more powerful and effective, and thus more sovereign, compared to adhering to some technical definition of sovereign and being all the more easy to ignore or manipulate by global and/or much larger economies. For the small ones, cooperation bring power, it does not take it away.
- madsbuch 3y ago
  > Collaboration on something like the Euro makes small countries more powerful and effective, and thus more sovereign ... Effective, yes – just like a single party system is more effective than having multiple parties and democratic processes. more sovereign – how? I really can't see how Spain is more sovereign managing their unemployment issues when they can not control supply of their own currency, and thus investment?
  - brnt 3y ago
    No, nothing like a single party system. Or are you saying a nation only fighting for itself is like a single party system? Control = power x influence. The argument was that more control can be had through having a local currency. I think, for smaller countries, more control and thus more sovereignty is had through teaming up, because the cooperation is (at least in the case of the EU) democratic, and is a tool more powerful than any national tool ever could be, and therefore control is larger.
friend_and_foe 3y ago
Ideally, currency should just exist and people should pick it based on how well it suits their needs. National currencies are fine in an environment where most economies are mostly domestic, because the effect of import and export on currency availability and foreign currency exchange is miniscule. This was the environment when these national currency schemes were devised. In a globalized economy, every country has trade imbalances which means they all need to have foreign currency reserves, adjust their reserves when economics change on the ground and adjust interest rates, this is a massive overhead for every country in the world that doesn't need to exist.

brnt 3y ago

Yes, but at the same time nobody exists in a vacuum, especially not small countries like Denmark in highly globalised economies. Collaboration on something like the Euro makes small countries more powerful and effective, and thus more sovereign, compared to adhering to some technical definition of sovereign and being all the more easy to ignore or manipulate by global and/or much larger economies. For the small ones, cooperation bring power, it does not take it away.

madsbuch 3y ago
> Collaboration on something like the Euro makes small countries more powerful and effective, and thus more sovereign ... Effective, yes – just like a single party system is more effective than having multiple parties and democratic processes. more sovereign – how? I really can't see how Spain is more sovereign managing their unemployment issues when they can not control supply of their own currency, and thus investment?
- brnt 3y ago
  No, nothing like a single party system. Or are you saying a nation only fighting for itself is like a single party system? Control = power x influence. The argument was that more control can be had through having a local currency. I think, for smaller countries, more control and thus more sovereignty is had through teaming up, because the cooperation is (at least in the case of the EU) democratic, and is a tool more powerful than any national tool ever could be, and therefore control is larger.

friend_and_foe 3y ago

Ideally, currency should just exist and people should pick it based on how well it suits their needs. National currencies are fine in an environment where most economies are mostly domestic, because the effect of import and export on currency availability and foreign currency exchange is miniscule. This was the environment when these national currency schemes were devised. In a globalized economy, every country has trade imbalances which means they all need to have foreign currency reserves, adjust their reserves when economics change on the ground and adjust interest rates, this is a massive overhead for every country in the world that doesn't need to exist.