[Toddsterpatriot]

For politicians, the problem with having a currency “pegged” to gold, or any other commodities, is that what it really means is that you are no longer allowed to just print money.

How does the peg limit the printing?

[SauronOfMordor]

Say, for example, we peg the dollar to gold at the current price of $1,900/oz.

If you try to print money at a rate that would inflate the dollar, people can go to the treasury and demand that it turn over gold in exchange for $1,900 in currency. This acts as a disincentive to causing inflation.