Under the gold standard, a country had little control over its own money supply.

Question

Quizplus · Accepted Answer

When a country is on the gold standard, the amount of money in circulation is tied to the amount of gold reserves held by the country's central bank. This means that a country cannot simply print more money to increase the money supply, as it must have the corresponding amount of gold to back it up. Therefore, the control over the money supply is limited by the amount of gold reserves.

Under the Gold Standard, a Country Had Little Control Over