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Business
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8 / 2213 |
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Throughout the 1870âs periodic demands for silver occurred that was caused by deflationary economics; but a general pressure towards a Gold Standard continued. By 1879, only gold coins were accepted by the Latin Monetary Union consisting of Switzerland, Italy, France, Belgium and Greece.
With this system, expansionary monetary policy was limited to a governmentâs supply of gold...
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Trade flows and the free movement of gold were interrupted and thus the main trading nations were basically forced to suspend operation of the Gold Standard.
The Gold Standard: The Interwar Years
Currencies were allowed to fluctuate over fairly wide ranges in terms of gold and each other during World War I and the early 1920âs...
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