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The Value of Money
img img The Value of Money img Chapter 40 THE QUANTITY THEORY AND INTERNATIONAL GOLD MOVEMENTS No.40
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Chapter 40 THE QUANTITY THEORY AND INTERNATIONAL GOLD MOVEMENTS No.40

The quantity theory explanation of international gold movements is as follows: if money comes into a country, it raises prices. If the price-level of the country is raised more rapidly than the price-levels of other countries are rising, then the country becomes a bad place in which to buy and a good place in which to sell; its exports fall off, it

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