The widespread dissatisfaction with almost two decades of worldwide inflation has prompted interest in a return to some form of a gold standard. Some crucial questions must be answered, however, before such interest can be taken seriously. Two questions immediately come to mind: How did the actual gold standard operate? What was its record for providing stable prices and overall economic stability? This article attempts to answer these two questions. It focuses primarily on what is commonly referred to as the “Classical Gold Standard,” which prevailed in its most pristine form between 1880 and 1914.