The glory and demise of monetary nationalism in the post-communist Baltic states ZENONAS NORKUS Institute of Sociology and Social Work, Faculty of Philosophy, Vilnius University, Lithuania ABSTRACT. This paper contributes to the body of research on the monetary variety of nationalism, which conceives of national currency as an essential element of nation state and national identity (‘one nation, one money’), exploring its contribution to the successful internal devaluation in the Baltic states during the economic crisis of 2008–2010. Contrary to the predictions of renowned experts in economics and finance, Estonia, Latvia and Lithuania were able to keep the peg of their national currencies to euro. Because of peculiar features of their histories (a brief period of independence with national currencies allegedly based on a gold standard, interrupted by prolonged Soviet occupation and the despised ‘wooden rouble’) monetary nationalism was very strong in the restored independent Baltic states. Monetary nationalism predisposed their indigenous populations to embrace the neoliberal model of capitalism and to accept the welfare cost of the defence of currency pegging during the crisis. Paradoxically, the success was self-defeating, as it enabled the Baltic states to join Eurozone, abolishing national currencies. Theorizing about this case study of Baltic monetary nationalism, this paper closes with the interpretation of the rise and demise of national currencies as the reversal of the Weberian disenchantment process. Monetary nationalism (making money a core part of national identity) is a product of this reversal. KEYWORDS: Baltic countries, economic crisis 2008–2010; disenchantment, mone- tary nationalism, national currency, nationhood/national identity Introduction This paper contributes to the growing body of research on the role of curren- cies in nation building as symbols of national identity (Dodd 1994, 1995, 2001; Gilbert 2005; Gilbert and Helleiner 1999; Helleiner 1998, 2003a, 2003b, 2006; Helleiner and Pickel 2005; Kaelberer 2005, 2010; Lauer 2008; Meier-Pesti and Kirchler 2003; Müller-Peters 1998; Peebles 2008; Penrose 2011; Penrose and Cumming 2011; Popadopoulos 2015; Sørensen Nations and Nationalism •• (••), 2018, 1–22. DOI: 10.1111/nana.12404 © The author(s) 2018. Nations and Nationalism © ASEN/John Wiley & Sons Ltd 2018 EN AS JOURNAL OF THE ASSOCIATION FOR THE STUDY OF ETHNICITY AND NATIONALISM NATIONS AND NATIONALISM