The gold standard was effective in managing inflationary and deflationary pressures and prevented the government from increasing the money supply without a corresponding increase in gold reserves, thus keeping gold reserves in check public spending. As a result, it also prevented the government from using cash flow injections to stimulate the economy during recessions, thus exacerbating economic downturns. Fiat money provided greater elasticity than the gold standard because it allowed the government to use the money supply to manage economic expansions and contractions and stabilize purchasing power; however, an irresponsible government that abuses its control over the money supply can completely decrease the value of its currency and lead to an economic collapse. Overall, the chartalist perspective should be the foundation of the future global monetary system, because it provides greater economic flexibility. The health of the economy should depend on the productivity and resourcefulness of its citizens rather than the supply of gold. Cash flow injections put money in people's hands, and it is their resourcefulness that will get the country out of recession. Furthermore, democratic governments give people the ability to select representatives who will be responsible for decisions regarding monetary policy. Responsible government combined with regulated control over the money supply will allow a country to fully exploit the potential that fiat money has in stimulating and supporting economic growth; however, none of this will work without any trust or faith in the