Theories vary. It's believed in some theories that some nations "cheated" and held more gold than the currency offered would imply. Historically, things are ju

Theories vary. It's believed in some theories that some nations "cheated" and held more gold than the currency offered would imply. Historically, things are just as unstable with gold as without it. And if you have productivity rises and inadequate increase in gold supplies, you get deflationary effects. This being said, fiat seems just as capable of that.