ABSTRACT
PROFESSOR HAYEK shows good reasons for believing that no society can long remain free if it fails to maintain a reasonably stable monetary system, but he also recognises that money is an exception to the general rule of relying upon a free market. As Sir Robert Peel said in moving the Bank Charter Act of 1844, the virtue of free competition is to produce the greatest supply at the lowest price and 'we do not want an abundant supply of cheap promissory paper'.
