Can You Identify The Costs and Benefits of Gold Standard Money and Fiat Money in

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Ivan

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Relation to One Another? ...and perhaps explain?
I know there are argument about which is better, but what i want to know is why! What are the observed facts which influence the decision about which is better? And i want both sides!

Preferred format of your answers:
GOLD STANDARD MONEY:
Costs:
Benefits:

FIAT MONEY:
Costs:
Benefits:
 
The principal problem with a gold standard is that it constrains monetary growth to how much gold you can acquire. That is also the principal benefit in that it prevents governments from inflating the currency.

An analogous situation would exist if you prevented all enterprises from borrowing. It would constrain their ability to expand because their only capital source would be internally generated funds and equity investment. But it would prevent them from potentially leveraging themselves into insolvency.
 
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