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- The mint parity theory explains how exchange rates between countries on the gold standard were determined. Under this system, currencies were defined by and convertible to a fixed quantity of gold. The exchange rate between two currencies adhering to the gold standard was based on the parity of the mint price of gold in the two countries.www.slideshare.net/slideshow/mint-parity-theory-history-definition-advantages-a…
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Theories of Exchange Rate Determination | International Economics
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