Finance, Forex and Investments

What would happen if there is no central bank?

Given the bank notes are printed by the government and given evenly among the banks at no interest. The amount of money would stay constant. . The interest would happen only between the lender and the borrower at the market interest rate. . What do you think about this model? Would this work? If you think it wouldn't, give reasons.

Public Comments

1. The model will work. The only thing is that the functions of central bank are shifted to central government. .