The gold standard constrained policymakers' ability to adjust the money supply from "summary" of A Monetary History of the United States, 1867-1960 by Milton Friedman,Anna Jacobson Schwartz
The gold standard was a system in which the value of a country's currency was directly linked to a specific amount of gold. Under this system, the government was required to hold a certain amount of gold reserves to back its currency. This meant that the money supply was tied to the amount of gold held by the government, limiting policymakers' ability to adjust it as needed. Because the money supply was tied to gold reserves, policymakers had to ensure that the amount of money in circulation corresponded to the available gold reserves. If the government printed too much money relative to its gold reserves, it risked running out of gold and being unable to redeem its currency at the set exchange rate. This constraint limited policymakers' ability to stimulate economic growth by increasing the money supply during times of recession. Con...
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