--%>
Assignment Help - homework help

Advantages and disadvantages of gold standard

Write the advantages and disadvantages of the gold standard.

E

Expert

Verified

Advantages of the gold standard involves: 

a) As supply of gold is controlled, countries do not have high inflation; 

b) Any of BOP disequilibrium may be corrected through the cross-border flows of the gold.

While, the major disadvantages of gold standard are as: 

a) The world economy may be subjected to the deflationary pressure due to restricted gold supply; 

b) The standard of gold itself does not have any mechanism for enforcing rules of game, and, consequently, countries can pursue economic policies which are incompatible with standard of gold.

   Related Questions in Financial Accounting

  • Q : Categories of occupational crime

    Describe four categories of occupational crime.

    		•
  • Q : Success and failure of the employees

    What are the reasons for the success and failure of the employees ?

    		•
  • Q : Objective Questions on Sociology 1)

    1) Which large European city declined significantly in population over the past century? A) Paris B) London C) Rome D) Madrid 2) The industrial city was characterized b A) decentralization B) corporate growt

    		•
  • Q : Trading A CD/$ bank trader is presently

    A CD/$ bank trader is presently quoting a small figure bid-ask of 35-40, while rest of the market is trading at the CD1.3436-CD1.3441.  Specify what all is implied about trader’s beliefs by his prices?

    		•
  • Q : Firms attaining the U.S. firms

    Presently, several foreign firms from both the developed and developing countries attained high-tech U.S. firms. What would have motivated these firms in order to attain the U.S. firms?

    		•
  • Q : Who is a debtor Who is a debtor ?

    Who is a debtor? Briefly explain the term.

    		•
  • Q : Identification of Responsibility Centre

    Identification of Responsibility Centre: Profit centre has been taken as the responsibility centre. Profit centre is the one in which both the revenue and costs are accounted for. The difference between them is the profit so the managers for this cent

    		•
  • Q : Categories under budgets are divide

    Write down the chief categories under which budgets are divided?

    		•
  • Q : Separately-priced-items strategy

    Problem 1.  The manager of Joe's Menswear has noticed that over the past two holiday seasons their usual sales strategy of marking down prices has not been yielding the boost in revenues that it once did.  JM sell men's suits, dress shirts,

    		•
  • Q : Meso and Macro level theories of

    Identify and elucidate three meso- and/or macro-level theories about deviance.

    		•