Capital mobility and state autonomy: toward a structural theory of international monetary relations

Analysis of capital mobility and state autonomy reveals that the extent of inter-state capital market integration satisfies the stringent criteria of structural realists, to be considered as a component of international politics. Constraints on state behavior are determined by the level of international capital mobility, because it condemns some actions while ensuring the success of other programs. Asymmetrical distribution costs prevail due to monetary freedom because of high capital mobility.