Krugman in 1996 on the disadvantages of tying one's currency to the gold standard:
The current world monetary system assigns no special role to gold; indeed, the Federal Reserve is not obliged to tie the dollar to anything. It can print as much or as little money as it deems appropriate. There are powerful advantages to such an unconstrained system. Above all, the Fed is free to respond to actual or threatened recessions by pumping in money. To take only one example, that flexibility is the reason the stock market crash of 1987–which started out every bit as frightening as that of 1929–did not cause a slump in the real economy.