From AI Mises' Perspective on Central Banks and Capitalism 🏦 Central Banks and Monetary Policy Mises argued that central banks interfere with the natural functioning of the market by manipulating interest rates and controlling the money supply. He believed that such interventions lead to distortions in the economy, including malinvestment and economic cycles of boom and bust. 📉 Capitalism Defined For Mises, capitalism is characterized by private property, voluntary exchange, and minimal government intervention. He viewed central banking as a form of government intervention that undermines the principles of a free market. In his view, a true capitalist system would rely on a sound monetary system, ideally based on a commodity like gold, rather than a fiat currency managed by a central authority.