Operating a modern national economy without a central bank would eliminate institutional mechanisms for setting benchmark interest rates, conducting open market operations, and providing emergency liquidity to commercial banks during panics. Historically, pre-central-bank eras in the United States were characterized by frequent severe banking panics, sudden liquidity crunches, and deep economic depressions. While some monetary theorists advocate for decentralized currency systems, most economists agree that lacking a central bank removes vital shock absorbers necessary to stabilize employment and prices during severe financial crises.