One of the most enduring myths of modern times is a myth about the banking system and the central bank, saying that the banking system is the "nervous system" of the economy and a highly important tool for investment and growth, and that the rescue of the banking system is a paramount task of the country's leadership. The most important jobs of the central bank itself are the maintenance of a stable exchange rate for the national currency, the battle against inflation, and "paternal oversight" of the banking system, as expressed in continuous monitoring and unlimited support at difficult times. It is commonly felt that even though our economic reforms have been largely unsuccessful, two achievements are indisputableâthe creation of a well-developed banking system and an independent and prestigious Central Bank. Accordingly, any actions that could inflict harm on these two institutions would thus be a blow to the very essence of economic reform, democracy, and progress.
