文档介绍：Answer: The adjustment mechanism under the gold standard is referred to as the price-specie-flow mechanism expounded by David Hume. Under the gold standard, a balance of payment disequilibrium will be corrected by a counter-flow of gold. Suppose that the . imports more from the . than it exports to the latter. Under the classical gold standard, gold, which is the only means of international payments, will flow from the . to the . As a result, the . (.) will experience a decrease (increase) in money supply. This means that the price level will tend to fall in the . and rise in the . Consequently, the . products e petitive in the export market, while . products e petitive. This change will improve . balance of payments and at the same time hurt the . balance of payments, eventually eliminating the initial BOP . Explain the mechanism which restores the balance of payments equilibrium when it is disturbed under the gold : The adjustment mechanism under the gold standard is referred to as the price-specie-flow mechanism expounded by David猛蜘焰令尸朗在玄久荔亦硒****殃战灵婶唯疾白滁土蚌粉池谣义割耍监虞勇宿孝唁瞬斤硝匀镇椎汤僚增所考依怂才事幢厦赃挞站院呈诉照约王锦侥肌
12. Once capital markets are integrated, it is difficult for a country to maintain a fixed exchange rate. Explain why this may be . Explain the mechanism which restores the balance of payments e