Lending dynamics are different in a gold standard economy, with a fixed amount of currency, because banks do not have leverage on lending. Today, banks need on

Lending dynamics are different in a gold standard economy, with a fixed amount of currency, because banks do not have leverage on lending. Today, banks need only have ~10% of the money they lend in deposits. The rest is new money. With a fixed money supply, banks can't do that. You divide by 10 the amount of money available to lend. In a gold standard economy, money supply available for financing is much, much more restricted. The modern economy is a constant bet on future economic growth. Failed bets translate into inflation on a macro-scale, and painful leveraged losses for banks on a micro-scale. With fixed money supply, you cannot bet at all and potential growth is, by definition, much slower.