The international gold standard
automatically stabilized the quantities of money in participating nations since gold specie flowed to countries where it was most valuable according to Hume's pricespecie-flow mechanism.
The second main objective of the 1920s was to restore the international gold standard
. Germany stabilized after its hyperinflation.
 For the majority of British and American international bankers and economists in the 1920s, Strong included, their formative years had fallen in the prewar period, when--as Eichengreen demonstrates--the self-regulating international gold standard
worked better than in any period before or since.
Under the old international gold standard
, when countries had an imbalance between their exports and imports, they moved gold from the deficit country to the surplus countries in payment of their bills.
An additional enforcement mechanism for the international gold standard
rule may have been the hegemonic power of England, the most important gold standard country.(71) A persistent theme in the literature on the international gold standard
is that the classical gold standard of 1880 to 1914 was a British-managed standard.(72) Because London was the center for the world's principal gold, commodities and capital markets, because of the extensive outstanding sterling-denominated assets, and because many countries substituted sterling for gold as an international reserve currency, some argue that the Bank of England, by manipulating its bank rate, could attract whatever gold it needed and, furthermore, that other central banks would adjust their discount rates accordingly.
Hoping to stabilize the world economy in the 1920s, the industrial nations, notably Britain and France, restored the international gold standard
. The restoration--which must be judged a failure--compelled the Federal Reserve to make choices between its international and its domestic objectives.
The Breast Care Clinic, which was opened at HMC's National Centre for Cancer Care and Research (NCCCR) earlier this year, provides patients with a special evaluation that is currently the international gold standard
for breast cancer diagnosis.
The former period represents the zenith of the international gold standard
in the decades leading up to World War I.
The introduction on the homepage of the website of one such provider of dental services shows just how developed, widespread and marketable the industry has become: '...has been serving the foreign missions, tourists, diplomats, UN staff and expatriate communities along with local Nepalese patients with a commitment to provide the care, that is of an International Gold Standard
Friedman and Schwartz, in their detailed analysis of this period, note that after 1923 "gold movements were largely offset by movements in Federal Reserve credit so that there was essentially no relation between the movements in gold and in the total of high-powered money." The Fed's gold-sterilization policy made the operation of the international gold standard
more difficult, they observe, because it threw an even heavier burden of postwar adjustment on countries, especially Britain, that were trying to deflate their monetary systems to reestablish prewar gold parities (1963, 282-84; see also Dowd and Timberlake 1998, 77-191).
Worldwide monetary standards -- such as the international gold standard
from the 1870s to 1913, or the fixed rate dollar standard under Bretton-Woods from 1950 to 1971 -- were quite successful in limiting exchange risk while promoting globalization.