I agree with your first paragraph, but the rest of your post contradicts it. The effect of Central Bank policies of the last decades is yet to be seen. Consider

I agree with your first paragraph, but the rest of your post contradicts it. The effect of Central Bank policies of the last decades is yet to be seen. Consider, for example, the UK productivity puzzle, where productivity has remained stagnant since 2008. One of the versions that was, if I remember right, expressed by Andy Haldane of BoE, was that loose monetary policy allowed a large number of uncompetitive businesses to survive, lowering total productivity. The primary function of central banks when they were established was to prevent bank runs, acting as a lender to banks. But what if, for example, we had full reserve banking instead of fractional reserve? Would that not eliminate bank runs, make the economy more stable, ensure interest rate serve as a valid signal of consumer time preferences and of the demand for capital, and eliminate the need for a central bank?