I’ve just started an economics major at university and did economics in high school, where I learned that both the more you are linked in the global economy the more you effect and are effected by the business cycle. Now Austrian economics suggests that if we have a properly free market the wild swings we experience (thanks to both government (inc central bank) policy creating it then prolonging the problems in their misguided attempts to fix it) in the business cycle wouldn’t exist. However these days global markets are all heavily interlinked and both effect and are effected by the global economy. I am from Australia, say overnight I magically became the supreme leader and immediately instituted all the policies that are supported by Austrians/libertarians/minarchists, a free market economy, the gold standard, all that fun stuff – we would still experience business cycle problems thanks to bad policy around the world, wouldn’t we?
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.