How did the international monetary system influenced macroeconomic policy-making and performance during the gold standard era (1870-1914)?
What will be an ideal response?
London was the center of the international monetary system. The primary responsibility of the central bank was to preserve the official parity between its currency and gold. To maintain this price, the central bank needed an adequate stock of gold reserves. Central banks tried to avoid sharp fluctuations in the balance of payments.
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In the figure above, the marginal cost of producing a computer
A) increases as more computers are produced. B) stays the same as more computers are produced. C) decreases as more computers are produced. D) is the same as the marginal cost of producing a television set.
A good policy ________________ and a bad policy _________________
a. Moves an asset to higher value use; moves an asset to lower value use b. Moves an asset to lower value use; moves an asset to higher value use c. Refrains from any government intervention; concentrates on government intervention d. Concentrates on government intervention; refrains from government intervention
A decrease in net wealth will _____
a. shift the consumption function downward b. make the consumption function steeper c. cause an upward movement along the consumption function d. cause a downward movement along the consumption function e. make the consumption function flatter
Which of the following statements accurately describes the U.S. balance of payments in 2017?
a. The balance on goods and services was a positive value.
b. The balance of trade was a positive value.
c. The balance of services was a positive value.
d. The current account balance was a positive value.