I probably should have said "to the detriment of the economy". I would argue that what we're seeing with the sovereign debt crisis in Europe or the runaway government spending in the US are examples of that. Certainly the Weimar Republic and Zimbabwe are examples. The total economic collapse of the Soviet Union is another example of failed central planning. North Korea vs. South Korea? Central planning is bigger than simply fiat money, but fiat money is a boon to central planners, and possibly a prerequisite. I probably didn't articulate my point very well.

It is certainly true, however, that governments with control of the money supply can spend as much as they want on whatever they want (up to currency collapse), and this is not possible with a commodity-backed currency. The great thing about a hard currency, whether gold or otherwise, is that it's beyond the reach of greedy politicians.