This was an interesting read for me. Though I still think having more than one bank is a good idea. In what way would a central bank with these limited powers/function be better than an array of unrelated banks with the same powers/functions? Is the monopolistic aspect of a central bank not exactly what allows it to spin off into all these other behaviors? Wouldn’t a bank and currency abiding by a gold standard be more desirable than one that doesn’t?
In practice, it's not really notably better. In theory, you don't have to worry about regulating or monitoring a bunch of private for-profit enterprises, you just have a single entity that would, ostensibly, also be cheaper for its customers since they're the ones paying for it through taxes in the first place and there is no profit motive.
This was an interesting read for me. Though I still think having more than one bank is a good idea. In what way would a central bank with these limited powers/function be better than an array of unrelated banks with the same powers/functions? Is the monopolistic aspect of a central bank not exactly what allows it to spin off into all these other behaviors? Wouldn’t a bank and currency abiding by a gold standard be more desirable than one that doesn’t?
In practice, it's not really notably better. In theory, you don't have to worry about regulating or monitoring a bunch of private for-profit enterprises, you just have a single entity that would, ostensibly, also be cheaper for its customers since they're the ones paying for it through taxes in the first place and there is no profit motive.