You want a link? Here is one,<p><a href="http:&#x2F;&#x2F;www.bradford-delong.com&#x2F;2015&#x2F;03&#x2F;time-for-a-rant-why-oh-why-cannot-we-have-better-economists.html" rel="nofollow">http:&#x2F;&#x2F;www.bradford-delong.com&#x2F;2015&#x2F;03&#x2F;time-for-a-rant-why-o...</a><p>The short answer is a run on safe assets like gold creates a positive feedback loop. A demand short fall causes people to try to acquire safe assets like gold. Spending &#x27;money&#x27; on gold means money not spent on real goods and services. Which results in a demand shortfall. And people wanting safe assets to park their wealth.<p>Rinse lather repeat till 1&#x2F;4 of workforce is unemployed. A central bank can print or lend out any amount of paper money to satisfy investors craving for safe assets. It can&#x27;t make more gold.<p>Why not have both? Problem: Trying to peg the money supply to the price of gold hamstrings the central banks ability to supply paper. Lesson learned 1929-1939. And learned again by Argentina in 2000 with a US dollar peg serving as a de facto gold standard.