In the Case Study on international reserves (pages 555–558), we asserted that except in the case of a reserve currency system, an attempt by all central banks simultaneously to raise their...

In the Case Study on international reserves (pages 555–558), we asserted that except in the case of a reserve currency system, an attempt by all central banks simultaneously to raise their international reserve holdings through open-market sales of domestic assets could have a contractionary effect on the world economy. Explain by contrasting the cases of a gold standard-type system and a reserve currency system.