[M]oney manipulation...does not produce goods. Such action has only one final witchery and that is, to undermine the confidence of men in the future safety of their savings and thus to stifle their enterprise in renewing and improving their plant and equipment.

It could be argued that discretion is only used by central banks today in order to eliminate inflation and maintain the stability of the currency, which is positive for markets. However, although an increasing number of central banks today conduct monetary policy with the sole objective of keeping inflation low, they are still involved in setting interest rates and controlling the money supply in the pursuit of a particular outcome: namely to ensure that economic growth is kept at 'sustainable non-inflationary' levels. In other words, central banks operate and act on the basis of very limited information in order to achieve macro economic certain outcomes, by using discretionary power – i.e. they operate in a manner which is contrary to the requirements of the spontaneous order. It should also be remembered that legally, central banks retain the same capacity to create inflation as during the 1970s – only attitudes towards inflation have changed, not the capacity of governments to cause it.

A monopoly over money supply also allows government to finance itself by in effect 'printing' money, which although is politically useful in creating short term aggregate demand, is ultimately inflationary and reduces the value of the currency. This acts as a coercive taking of private property, similar to a tax, and is typically unconstrained by any Parliamentary or Constitutional process.