Mises Daily
Author:
Frank Shostak
Online Publish Date:
lends fictitious claims or money out of thin air. Conversely, as the number of competitive banks diminishes, that is, as the number of clients per bank rises, the not so in the case of the existence of a central bank. By means of monetary policy, the central bank protects fractional-reserve banking and thus the creation of Act changed all that. The deregulated environment resulted in fierce competition between banks. The previously fixed margins were severely curtailed. This