system
Given the following post, respond as if you're commenting on Reddit:
human
What would happen if a country didn't have a central bank?
gpt
First, Ill assume you mean they develop in such a way that they never established a central bank for whatever reason. That said, no central authority would have the ability to manipulate a country’s money supply. So they couldn’t employ counter cyclical monetary policies. Also there probably wouldn’t be a generalized currency that everyone in the country uses. Independent banks would issue their own currency and set their own money supply. So in practical terms that would result in 100’s or 1000’s of currencies within an economy.

If you wanna read more about the United State’s time without a central bank, google “free banking”.