But yes, the difference between gold and fiat is that the general tendency in a hard currency economy is slightly deflationary while in an fiat currency it is slightly inflationary. Hayeks seems to believe that slight deflation is better than slight inflation, while Keynes the opposite.

So basically which is better depends on your values. Since conservatives want a small government and to reward savers, slight deflation is better - hence the reason for cutting spending in the UK. While democrats prefer big government and to rewards borrowers so for them slight inflation is better - hence no spending cuts in the US yet.