POLI 445 Lecture Notes - Lecture 5: Wield, Mckinley Tariff, Money Supply
30 Jan 2018
School
Department
Course
Professor
Document Summary
We"re talking about a set of rules that really originate in the domestic setting - the gold standard is about how you set your reserves. It"s about domestic legislation: which domestic interests pushed countries towards the gold standard, creditors were important groups in many of these countries in the push towards the gold standard, ex. How is britain getting others to commit: britain shapes rules, to borrow from british banks, others needed to prove credibility. Fixed exchange rates allow them to easily compare interest in various place: movement of money by investors eventually brings interest rates closer together everywhere. Is this a good thing: one medium of exchange. Size and scale of economic activity is going to expand beyond the amount of gold there is: how will you support increase in investment and trade if the money supply isn"t. Gold is withdrawn by foreigners, and your paper money is put back into your banks: change in money supply: decreases.
