In short, under a strict gold standard the monetary policy rule would be, “Maintain the price of gold at so many dollars per ounce.” Although the gold standard system malfunctioned and ultimately collapsed during the chaotic economic and financial conditions that followed World War I, many economic historians have credited it with promoting price stability and robust international trade and capital flows during 1870-1913, the so-called classical gold standard 1 era.
Another example of a rule-like monetary policy institution is a currency board, such as the ones currently employed by Hong Kong and several eastern European nations.