2015金融英第一节课.pptVIP

* 4.2. Types of monetary system 1, The Metallic Standard 1) Bimetallic Standard (2)Double Standard Under the system gold coins and silver coins circulated according to the ratio between the two metals stipulated by government laws. The advantage was the ratio of the two was not subject to market fluctuation of prices of both gold and silver. The disadvantage was there existed Graham’s Law that bad money drove good money out of circulation when market prices of both gold and silver deviated from the official ratio between the two metals. * 4.2. Types of monetary system 1