Why Gold Standard Doesn't Work?

There are significant problems with tying currency to the gold supply: It doesn't guarantee financial or economic stability. It's costly and environmentally damaging to mine. The supply of gold is not fixed.

Why did the gold standard fail?

The classical gold standard era ended with World War I, because to fund wars governments have to print a lot of money. In these conditions, maintaining gold convertibility goes out the window. After the war ended, the US and most other advanced economies scrambled to re-peg their currencies to gold.

What is the problem with gold standard?

Under the gold standard, gold was the ultimate bank reserve. A withdrawal of gold from the banking system could not only have severe restrictive effects on the economy but could also lead to a run on banks by those who wanted their gold before the bank ran out.