Monetary Sovereignty: 3 More Conditions

• Hockett and James say more is needed for effective monetary sovereignty

• Nation must impose a tax liability in the unit of account

  • .. thus ensuring demand for that unit of account

• Nation must have limited trade dependence in essential goods

  • Goods like food and energy sources

  • To mitigate foreign exchange and inflation risk

• Nation must have effective, noncorrupt institutions for inflation management