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Originally Posted by All Systems Go
You do realise we don't have an anarcho-capitalist system, right?
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No...
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Originally Posted by Nodrog
What are you asking? Central banks generally do various things, like controlling the money supply and bailing out other banks if they get in trouble in a way which is going to damage the economy. Obviously there wouldnt be a government mandated central bank if you had anarchy, but there could still be a de facto bank which acted as the centre.
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I wasn't aware central banks had any kind of duty to bail out private institutions , surely something like Enron or WorldCom were as detrimental to the economy as say an insolvent bank (and bearings wasn't bailed out). Basically i don't see the purpose of central banks, if you want 'currency' to be controlled by states they make sense, but in the absence of that i don't see why every bank shouldn't issue its own currency.
edit having read that i disagree with the notion of a 'discount window' on general principles
