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Essays On Money And Labor, Kwabena Okyere Boateng

Electronic Theses and Dissertations

The price-specie-flow mechanism (PSFM) is a theory of the adjustment of the balance of trade and gold flows as a result of deviations in relative prices across countries under a gold standard. The PSFM is central to quantity-theoretic discussions of economic fluctuations under a gold standard as well as analysis of whether central banks follo``the rules of the game'' of the gold standard. In short, the PSFM is the standard working assumption when it comes to gold standard adjustment. However, at least since Adam Smith there has been an alternative to the PSFM that has come to be known as …