Trading Sovereignty for Stability? The Political Economy of Monetary Integration

Review of International Studies , Volume 37 , Issue 2

How do states attempt to mitigate the pressures of financial globalisation? This article suggests that options can be understood in terms of monetary regime choice. These are best understood with their international component included – whether states integrate unilaterally, integrate multilaterally, or go it alone monetarily. But to understand the international side of monetary relations, one must look to domestic political structures, histories and politics. It is important that to understand that within the pressures of the international system, domestic politics is a fons et origo determining the health and stability of international economic relations.