innonimatu
the resident Cassandra
- Joined
- Dec 4, 2006
- Messages
- 15,069
Are you saying that countries that use anothers currency have the "surrendered the essential thing about sovereignty."
Did countries whose currency was pegged to gold surrender there sovereignty.
That is a very good question, actually! I don't think it is exactly the same, because the peg with gold could and would be broken more easily than the use of another currency. The gold standard was not the same as using a foreign currency, and I will illustrate that with an historical example.
People forget that there was a modern experience with an "european currency" before the euro, that went beyond the simple gold standard. The Latin Monetary Union (wiki article just for an overview). It had a rather eventful history, and as with all international endeavors in finance was a continuous game of each country advancing its interests at the expense of others. Plus ça change...
The UK subscribed to the ideology and practice of the gold standard but (wisely) remained out of this currency union. Seems like they remember history better than the continentals.