1. What is the “Dutch disease”? How can government objectives such as the maintenance of full employment hinder the functioning of the gold standard? Would adjustment via income or via interest rates...

1. What is the “Dutch disease”? How can government objectives such as the maintenance of full employment hinder the functioning of the gold standard? Would adjustment via income or via interest rates be inhibited in the same way? 2. Why might historical patterns of prices show parallel movements between deficit and surplus countries? Could gold discoveries and common movements in national incomes cause this?