There will always be a central bank in some form, but the form the Fed takes today is antiquated, and extremely (NY Fed anyone?) prone to corruption. It needs to be made a subsidiary of the FDIC. After 1933, it had no redeeming social utility. It was supposed to act as the reserve that backed up the banks' reserves and make bank runs obsolete, but the Depression wound up showing it to be completely impotent for that purpose. The FDIC did and does a much better job. As for setting interest rates, in normal times the interbank market, now known as the Fed Funds market, of course, can do that all by itself. In abnormal times, you can let the FDIC sub formerly known as the Fed provide enough money to prevent money markets from seizing up while closing down the insolvent banks. All of them, not just the ones who don't have a member on the board of the NY Fed. There is no reason for it to exist. It's been obsolete for 80 years.
Why do we need a Central Bank? Why can't we let the market determine interest rates and end the FDIC?
The government and bankers need a mechanism (1) to try to get something for nothing, and (2) to backstop them when they take reckless risks in the pursuit of obscene profits. Hard/honest money is the antithesis of all that.
That's what Bankers and Government say.... But they reap huge benefits from fiat money, don't they? Are you sure Scat wasn't right?
It's not a matter of whether "capitalism is/isn't perfect". Capitalism is the best and HEALTHIEST economic model.... self-policing, self-correcting, rewarding those who work hard/smart.... and self-limiting of government's excessive spending. America was a GREAT country.. primarily because of the individual protections of the Constitution and Bill of Rights + Capitalistic economic model. We've degraded significantly since we started to abandon those principles... ie, Teddy Roosevelt's beginning of the Progressive party in 1906, and Woodrow Wilson giving us the Federal Reserve in 1913. Both of those assholes are on my "Worst Presidents" list... along with George W. Bush and Odumbo.... others too, of course. (Surprisingly to some ETers, I'm sure... Clinton is NOT on the worst list.)