The article characterizes Austrian School representatives' views of banking and currency role in free market economy. The author presents Austrians' views on the central bank and government's role in evoking of inflationary phenomenon and causing economic cycles at the same time. He formulates thesis that the cause of current financial crisis is not the free market or the lenders'/debtors' greed, but incorrect government policy in the legislation area (re-investment into society act) as well as incorrect FED policy based on 'providing liquidity' and keeping artificially Iow interest rates.
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