These risks are not new, of course. As Tommaso Padoa-Schioppa once noted, the demise of the gold standard shifted monetary management away from international constraints and towards domestic priorities. In Padoa-Schioppa’s words, this is when “monetary nationalism took over”.
[10] “In the last century [the] history [of monetary orders] was marked by a fundamental shift in relations between money and the two entities to which it had been anchored from time immemorial: a commodity (mainly gold) and the ‘sovereign’ or, to put it another way, intrinsic value and political power.