F. A. HAYEK'S UTOPIA ON THE MONOPOLY OF THE CENTRAL BANK?

Currently we cannot imagine the functioning of economy without existence of monopoly on currency issue in the country. There are economists who reject the principle of central banking model as well as the European Monetary Union and the ECB. They also include F. A. Hayek, a representative of the Austrian school. The starting point of Hayek's concept is the claim that money is not different from other goods. The supply of money could be better ensured by private entities which would issue private money and thus compete with the money issued by the state. Hayek was against the creation of a single currency in the EU. According to him, individual national currencies are the better one, which could be used freely in the EU. Each country would issue only the amount of money that would ensure its stability. Experience has shown that the central banks cannot always ensure internal and external stability of the currency and of the whole economy as well. Therefore, the problems which are currently faced by the EU and the euro area are confronted with the views of Hayek and are the subject for further scientific discussion.