You should read Nobel prize winner F.A Hayek's critique of the gold standard when combined with fractional reserve banking. Specifically , his lecture given at

You should read Nobel prize winner F.A Hayek's critique of the gold standard when combined with fractional reserve banking. Specifically , his lecture given at the London School of Economics :"The Function and Mechanism of International Flows of Money". It is available in the anthology "Prices and Production and Other Works" (https://mises.org/library/prices-and-production https://mises.org/library/prices-and-production) Briefly, the point that Hayek makes is that when money is multiplied on top of a gold base, eventually a country will run a paper currency deficit with another country and then the citizens of the other country will use the paper to redeem gold from the central bank of the paper issuing country. When this happens the reserves in the paper issuing country will tighten and the money multiplied on top of the gold will contract rapidly in supply causing a credit crash.