Having a gold coin money and 100 percent reserve banking would largely insulate an economy from the effects of monetary inflation and credit expansion elsewhere. Inflated fiat currencies from other countries would depreciate against the domestic gold coins and would not expand the reserves of 100 percent gold reserve banks,
Ludwig von Mises discusses such a case in his book, The Theory of Money and Credit, Part Four.
For more on the working of international adjustments, take a look at Joe Salerno’s article:
And also, F.A. Hayek’s book, Monetary Nationalism and International Stability: