The gold standard discussion in the mainstream media over the last year or so has been driven by the extreme measures taken by the Federal Reserve to shore up our banking system during the credit crisis.  Brad Delong, an economics professor at U.C. Berkeley has an interesting summary of why the gold standard monetary policy can lead to harsh economic conditions.  Some of the interesting points he cites:

(1) Countries that went away from the gold standard sooner fared much better during the Great Depression than those that held longer (like the U.S.)

(2) Average inflation, under the gold standard, is determined by the pace at which gold is mined