Recently I've read Fon Hayeks book "Denationalisation of Money", where he suggests to stop the central bank monopoly upon the money supply. Create competitive private currencies and let the free market provide the optimal quantity (and variety) of monetary products.
On the other hand we can imagine a situation opposite to Hayeks: global monopoly. 1 currency for the entire world, regulated by 1 central bank.
Are there any good mathematical models, that allow us to foresee, what would happen in the national and global economy in both cases:
- Total annihilation of the central bank, all the money is emitted by competing private organizations.
- All the money supply in the world is provided by 1 authority.