What Hayek said is that the bubbles popped pretty early on (which is a good thing) because they could not be maintained and continued by the institutions that e

What Hayek said is that the bubbles popped pretty early on (which is a good thing) because they could not be maintained and continued by the institutions that existed back then. That the bubbles popped is a good thing. A gold standard keeps the inflation stable, because gold can't be printed. Hayek goes on to say that a gold standard would not work because governments have an incentive to "cheat" and blow up giant bubbles, which cannot be done successfully with a gold standard. I think that currency should not be issued by governments at all, the absence of government issued money would mean competing currencies, and in a situation where gold competes with other currencies, gold often wins the confidence of the people.