Can you think of reasons for this contrast

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Under a gold standard of the kind analyzed by Hume, describe how balance of pay-ments equilibrium between two countries, A and B, would be restored after a transfer of income from B to A. ? Despite the flaws of the pre-1914 gold standard. exchange rate changes were rare for the "core" countries (including the richer European countries and the U.S.). In contrast, such changes became frequent in the interwar period. Can you think of reasons for this contrast?

Reference no: EM131248313

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