Thoughts on Ideal Currency Proposal – Flexible Gold Peg Redeemable Currency

I studied economics in college but became disillusioned since I did not find the field to be useful or true.

I was wondering about all your thoughts on a currency that is gold-backed but the peg dynamically adjusts based on increases to the money supply due to lending ONLY for the creation of new goods or services. The only thing tracked centrally would be the total money supply to dynamically maintain the gold peg.

While the value of the currency relative to gold declines due to expansion in the money supply, its purchasing power increases because for the entrepreneur to pay the loan off they have to create goods & services that are more valuable than the money supply expansion – businesses would only take a $100 loan if they can create more than $100 in value. This makes it so that purchasing power is guaranteed to increase over time since the lending would only be for the creation of new goods and services. This would create a gold-backed redeemable currency that supports business lending and guarantees an increase in purchasing power for everybody that uses it. To “Buy-In” to the currency, people can exchange their Gold at a local bank and be issued the currency at the peg!

Would love to hear your thoughts on this.