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The goods and consequently to make in the market way. Thus just as the competition between the usual goods promotesTo improvement of their consumer properties and rejection of bad quality production,
The competition between private currencies will make rejection badly provided and
Badly operated currencies. There are those currencies which will be in the best way
To carry out functions of money: to serve as an instrument of payment and to save the cost
In time. The important property of such competitive money consists that at them Use in economy macro-signals of not market character disappear, Which source now are the state regulating bodies. Stability of credit-and-monetary system Logic of private money - central in Hayek's reasonings, however, not
The unique. Other prominent aspect of a problem of monetary circulation, which
It is mentioned in the book - stability of bank system.
The modern credit-and-monetary system of the western countries is characterised by the high
Instability which try to overcome, and it is the extremely inefficient, By administrative regulation. This instability is immanently inherent in monetary system from the state Currency. Its deep reason consists in sharp easing of "immune" Market mechanism of competitive check and it accepted by the private Banks of decisions, the easing necessary, in turn, that The market mechanism has not torn away alien is administrative-operated The state currency. "The imperious" emitter of the state currency is interested in reduction Competition, as well as any "powerless" manufacturer, however unlike The last it has also means to achieve it. It is urged on by the falling On it an ekstra-pay load of financing of the State expenditure, Weakening its market competitive possibilities. This loading especially
It is considerable that a source of the tempting monetary for machinery of state
Resources is in the subordinated position in this device, instead of out of It, also is therefore incomparably more convenient milk cow, than always Tax system calling public pressure.
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