- Study guides, Class notes & Summaries

the rules of the game (classic gold standard) - under the gold standard, a country's money supply was limited to the amount of gold held by its central bank; each country set the rate at which its currency unit (paper or coin) could be converted to a given weight of gold (fixed exchange rate) defending a fixed exchange rate - under the gold standard, a country was responsible for preserving the exchange value of the country's currency by being willing and able to exchange its currency for gol...