Correcting trade imbalances:
Through the gold coverage, the gold supply in a country determined the volume of money in circulation.
Trade deficits or surpluses were neutralized by flows of gold.
A trade deficit automatically represented an outflow of gold.
Outbreak of the First World War.
Demand for immediate and massive creation of money.
Prices climb rapidly in some countries
Many countries decoupled themselves completely from the foreign exchange market through foreign exchange rationing