Classical Gold Standard 1875-1914 There are shortcomings a The supply of newly minted gold is so restricted that the growth of world trade and investment can be hampered for the lack of sufficient monetary reserves Even if the world returned to a gold standard, any national government could abandon the standard McGraw-Hilylrwoin 2-7 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rightsMcGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 2-7 Classical Gold Standard: 1875-1914 ⚫ There are shortcomings: ◼ The supply of newly minted gold is so restricted that the growth of world trade and investment can be hampered for the lack of sufficient monetary reserves. ◼ Even if the world returned to a gold standard, any national government could abandon the standard