The gold standard's "rules of the game" required central bankers in a surplus country to initiate contractionary monetary policies which lead to higher interest rates and net investment inflows.

Question

Quizplus · Accepted Answer

The gold standard's "rules of the game" required central bankers in a surplus country to initiate expansionary monetary policies, which would lower interest rates and encourage gold outflows to deficit countries, not contractionary policies.

The Gold Standard's "Rules of the Game" Required Central Bankers