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Specie flow mechanism |
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Specie flow mechanismUnder the gold standard, the mechanism by which international payments would adjust. A country with high inflation would export less, import more, and thus lose specie, i.e., gold. With the money supply fixed to the quantity of gold, the resulting monetary contraction would reduce prices. Due to David Hume.Similar MatchesBalance of payments adjustment mechanismBalance of payments adjustment mechanismAny process, especially any automatic one, by which a country with a payments imbalance moves toward balance of payments equilibrium. Under the gold standard, this was the specie flow mechanism. Price specie flow mechanismPrice specie flow mechanismSame as specie flow mechanism. Price specie flow mechanismPrice specie flow mechanismAdjustment mechanism under the classic gold standard allowing disturbances in the price level in one country to be wholly or partly offset by a countervailing flow of specie (gold coins) that would act to equalize prices across countries and automatically bring international payments into balance. Adjustment mechanismAdjustment mechanismThe theoretical process by which a market changes in disequilibrium moving toward equilibrium if the process is stable. See Walrasian and Marshallian adjustment. Dispute settlement mechanismDispute settlement mechanismThe procedure by which the WTO settles disputes among members, primarily by means of a three-person panel that hears the case and issues a report, subject to review by the Appellate Body. Further SuggestionsExchange Rate MechanismTrade Policy Review Mechanism Exchange Rate Mechanism Exchange Rate Mechanism (ERM) European exchange rate mechanism (ERM) |
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