ABSTRACT
The gold standard regime has, conventionally, been associated with three rules of the game. The first rule is that in each participating country the price of the domestic currency must be fixed in terms of gold. The second rule is that there must be a free import and export of gold. The third rule is that the surplus country, which is gaining gold, should allow its volume of money to increase while the deficit country, which is losing gold, should allow its volume of money to fall.
