Mises Daily
Author:
Frank Shostak
Online Publish Date:
is minimal. Elsewhere we have shown that in a free-banking environment with many competitive banks, if a particular bank tries to expand credit by practicing not so in the case of the existence of the central bank. By means of monetary policy, which is also termed the reserve management of the banking system, the Act changed all that. The deregulated environment resulted in fierce competition between banks. The previously fixed margins were severely curtailed. This