I suppose it depends on whether you think its the mismanagement of the FIAT currency that ends up being the problem whether it was linked to gold or not Ghalix.
I think Wikipedia doesnt do too bad a job of showing the history of gold standards and their demise.
http://en.wikipedia.org/wiki/Gold_standard
Ultimately it seems that a lack of flexibility of the gold standard has been its main enemy.Indeed countries often simply cast aside their gold standards when it suited them throughout the last few centuries which one could hardly call keeping to the discipline of a gold standard.
Was it the cause of economic collapse or was it poor economic management?Imo there is a strong arguement that a lack of good economic management is probably the main cause of such a collapse.But then at some stage the inherent lack of flexibility and the high economic /financial discipline that a pegged gold standard requires wouldnt exactly help an economy to manage economic issues as say a floating FIAT currency allows.
I think we see major problems when there is too much interventaion in the natural economic demand/supply conditions that should exist.When organsiations and individuals are allowed excessive forward credit that cannot be paid for then at some stage there SHOULD be major consequences via some form of wealth destruction.
But in todays helicopter Ben and super Mario world it seems we are destined to try and print our way out of trouble.
Will it work?
Well given time one can find a way to make most things work.Problem being just how much time does the US/Euro economic zones have if they wish to retain any form of currency control in the global economy if the Chinese are hell bent on creating their own measure of wealth that doesnt rely on a $US or a Euro.
