[vezzy-fnord]

The problem sounds like the debts, not the gold. Since, if you accept the debt deflation hypothesis and the idea of debt overhangs, these obviously occur in fiat money systems as well. Gold makes it hard to inflate monetarily, but we observe that catastrophic debts still occur in its absence.

[crdoconnor]

A gold standard makes debt deflation routine whereas fiat money systems make it much easier to adjust to systemic capital flows.

In essence the problems faced by Greece are due to a reinvention of the gold standard despite there not being gold involved this time around.

Point being that Gold only "worked" for a small elite and it was largely devastating to the rest.

[vezzy-fnord]

The problems faced by Greece are from a lack of monetary sovereignty, but to equate it as somehow being like a gold standard simply on locus of control alone sounds more like a political talking point than anything else.

[yxhuvud]

Catastrophic debts occur in its absence, but fiat money gives a way to handle catastrophic debt in ways that are a lot less harmful than when it happens in a gold based system.