Their economies were later severely damaged when falling asset prices caused saving to rebound, often to above normal levels, to correct previous overborrowing.
With a neutral, non-national money as the backbone of financial order, no country had a systematic way to export its overborrowing and inflation to the rest of the world.
This would have the effect, principally on the U.S. as the issuer of two-thirds of world reserves, of removing the debt overhang which has made trade deficits, government overborrowing, and hot money bubbles the way of life.