gold-exchange standard


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gold-exchange standard

a modified version of the ‘pure'GOLD STANDARD in which CURRENCIES such as the US DOLLAR are used by countries in addition to GOLD to settle BALANCE OF PAYMENTS deficits. See INTERNATIONAL RESERVES.
References in periodicals archive ?
However, he never uses the term gold-exchange standard or some other means to convey this distinction in his text, particularly in his most critical passages.
Such a system was bound to collapse, as had the gold-exchange standard.
Although they note that the interwar period was marked by a sharp increase in exchange controls, they fail to explain why: the interwar gold-exchange standard was a house of cards that needed exchange-control props because postwar price levels remained too high for the prewar gold parities that central banks attempted to restore.