Lecture 5 - Gold Standard

Lecture 5 - Gold Standard - Gold Standard Now there were 4...

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Gold Standard Now there were 4 systems operating instead of the gold standard 1. Sterling Era - People used sterling instead of gold - Included Britain’s trading partners (Japan, Denmark, Middle East, Portugal) - They used pounds instead dollars - Countries not allowed to use pounds with countries outside of sterling area 2. Dollar Era - North and South America was using this system - Major US trading partners - Relatively free trading 3. Exchange Control Era - Germany and its neighbours (especially in the East) - Used German marks but without limitations - Involved series of restrictions on financial transactions and trade (exchange controls and trade restrictions) - Exchange Controls – widely adopted in 1930, but only used till 1970, even used today in some places - System in which some governments which handles all foreign exchange - All foreign currency obtained from exports had to be sold to government department at a set exchange rate - Same with imports, had to buy foreign currency from the government
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This note was uploaded on 04/18/2008 for the course ECONOMICS ECN 220 taught by Professor Jolly during the Winter '08 term at Ryerson.

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Lecture 5 - Gold Standard - Gold Standard Now there were 4...

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