Central Banks allow us to pay each other and regulate banks to operate in the best interest of the economy by making 'good' loans. You are describing a gold sta

Central Banks allow us to pay each other and regulate banks to operate in the best interest of the economy by making 'good' loans. You are describing a gold standard or fixed monetary system. These systems have lead to deflationary collapses time and again. Without getting off of the gold standard as it was defined we would have never funded WW2 which was the larges money printing event in US history equating to 22% of GDP in government deficits.