If you base the amount of money available on gold so that credit growth is based on Gold then you limit how fast you can expand credit since Gold would have to be acquired to support the debt.
All currencies are fiat now. Its doesn’t matter if it is fiat because its the governments that have been so reckless over the last 50 years spending it. Our spending is out of control due to the leaders we have elected not on the currency.
A country with a flat tax or a consumption tax and a constitutional amendment to require a balanced budget would do great with fiat money.
