Asked by WillIam Cunkle on Jul 03, 2024
Verified
The gold standard had two main drawbacks: (1)______________ and (2)_____________.
Gold Standard
A monetary system in which the standard economic unit of account is based on a fixed quantity of gold.
Drawbacks
Drawbacks are disadvantages or negative aspects of a situation, plan, or product that may not make it as favorable as it seems.
- Acquire knowledge of the historical transformations in global monetary protocols, like the departure from the gold standard.
Verified Answer
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Final Answer :
(1) It will work only if participating nations are willing to accept periodic inflation and unemployment; (2) It will work only when the gold supply increases as quickly as the world's need for money
Learning Objectives
- Acquire knowledge of the historical transformations in global monetary protocols, like the departure from the gold standard.