Roubini: Here's Why a Gold Standard Won't Work ... A gold standard would just make business cycles more extreme, according to economist Nouriel Roubini (left). ...What's more, a gold standard would make central banks unable to fight inflation or deflation, much less do anything to combat persistent unemployment, Roubini said in an interview with NetNet yesterday. "A fixed exchange regime, even if it is not a gold standard... that world just doesn't work. Because in that world, monetary policy by definition instead of being countercyclical becomes procyclical," Roubini told NetNet. Nouriel Roubini "Suppose you have a fixed exchange rate regime... it just exacerbates the business cycle." – NetNet/CNBC.com