In describing the evolution of money and banking in the previous chapter, I deliberately slighted the role of the state. I wanted to show that money is not a mere creature of the state, so it was necessary to show how money and the institutions that supply it could have emerged without state intervention. But let there be no misunderstanding. Just because money could have evolved without a special role for the state does not mean that the state ought not to have a special role in monetary affairs. It simply means that we need to think about why the state has played such a dominant role in the supply of money. Once we answer that question, we then can ask what role the state ought to play in an efficiently operating monetary system. The latter question will occupy our attention in Part III. But for now, it is the former question that concerns us.