C. moderately volatile exchange rates. It examines the lessons from the \Classical Gold Standard" period, 1880-1914, for the bitcoin standard. There was minimal institutional support, apart from the joint commitment of the major economies to maintain the gold price of their currencies. Because the Bitcoin standard would closely resemble the gold standard, the paper explores the lessons about how it would perform by examining the classical gold standard period, specifically 1880–1913. Authors: … Some argue this is because it wasn’t as strict as the classical gold standard resembling more a … For example, it is known that, compared to the Classical gold standard period, policy makers pursued much more pro-active macroeconomic policies in the inter-war period. Under the classical gold standard, gold, which is the only means of international payments, will flow from the U.S. to the U.K. As a result, the U.S. (U.K.) will experience a decrease (increase) in money supply. Classical Gold Standard Period, Interwar Period, Bretton Woods, and today’s Floating Currency Era. Most countries in the world linked their currencies to an external standard, namely gold… Chapter in NBER book A Retrospective on the Classical Gold Standard, 1821-1931 (1984), Michael D. Bordo and Anna J. Schwartz, editors (p. 405 - 454) Published in 1984 by University of Chicago Press Expert Answer . From International Political Economy. The period between the two world wars was transitory, with the Bretton Woods system emerging as the new fixed exchange rate regime in the aftermath of World War II. D. stable exchange rates. This resulted in the reduction in international trade and thus the breakdown of the gold standard. Central Banks and the Bretton Woods Gold Puzzle. Show transcribed image text. (iii)- Classical gold standard (iv)- Flexible exchange rate regime (v)- Interwar period The chronological order that they actually occurred is: A. During the period of the classical gold standard (1875-1914) there were A. highly volatile exchange rates. C. moderately volatile exchange rates. In his article ‘The Influence of the Rate of Interest on Prices’, Economic Journal XVII (1907), Knut Wicksell argued that the variations in price level during the classical gold standard were not primarily due to variations in gold supply but, rather, to the interest rate policies followed by the central banks (i.e. C. Stable Exchange Rates. Previous question Next question Transcribed Image Text from this … Since gold-pegged countries traded extensively with economies operating more flexible monetary regimes … Show transcribed image text. D. none of the above. During World War I convertibility was suspended and exchange rate stability was abandoned. B. volatile exchange rates. Although the U.S. Treasury did not maintain 100 percent specie reserves for all its legal obligations under the classical gold standard, it did hold more than 100 percent reserves to cover its gold certificates. Question: Question 29 2 Pts During The Period Of The Classical Gold Standard, 1875-1914 There Were G Highly Stable Exchange Rates Volatile Exchange Rates No Exchange Rates Since Gold Alone Was Currency O None Of The Above. It wanted to make dollars more valuable and prevent people from demanding gold, but it should have been lowering rates to stimulate the economy. During the Great Depression, the Federal Reserve raised interest rates. This problem has been solved! No Need For Exchange Rates Because Of Limited Trade. The majority of countries got off gold in 1914 when A. the American Civil War ended. 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