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Ten times, it is increased greatly by expansion factor. However at carrying out of the
Politics the central bank takes into consideration this fact. Reasons
This sort of are represented by serious help of the theory, not so long ago
Developed by Mizesom "Geldwertstabilisierung und Konjunktuipolitik", with. 61. In
Conformity from it, in the conditions of free bank system of fluctuation can
To be substantially reduced, though are not eliminated completely. And not
Calls the slightest doubt that such system gives in comparison with
The centralised system much less open space for fulfilment of manipulations with
Whatever verdict, however, has been taken out to two these systems from the point of view of them
Stability, hardly the problem of this choice already will sometime get
Practical sense. For the overwhelming majority state intervention in
Bank sphere became so an integral part of the standard system that
Offers on refusal of it would call only sneers. One of results
Such relation there was that the bank sphere has won to itself an exception from
Rules about the insolvency, accepted in other areas of business and saying,
That it is necessary to pay for company liquidation. It is important to notice also that
As laws on bankruptcy almost were never applied from the necessary
Scrupulousness concerning banks, hardly it is possible to assert that the practical
Experience testifies to inapplicability of a free competition in the bank
The same appeals in favour of freedom of bank business, which from time to time
Are put forward today, basically proceed from those who actually is not
The supporter of this freedom as that. These appeals are a theory product
"A monetary miracle" ("money magic"). Such requirements of freedom are based on
Representation that it can give credit resources practically in
Unlimited volumes. This theory sees a source of all economic and
Social problems in deficiency of bank services which grows out
Bank monopoly [see Hake and Wesslau, "Free Trade in Capital", 1890;
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