It would make more sense to blame the failures of the gold-exchange standard on the initial wartime suspension, and the failure to return to the orthodox gold standard as soon as possible thereafter. His discussion of the AD puzzle heavily relies on Eichengreen, but his presentation is clearer. Manufacturing production higher for non-gold countries. Price growth higher for non-gold. M1 growth higher for non-gold.
Nominal wages fall less in non-gold.
Real wages fall more in non-gold. Employment rises more in non-gold. Nominal interest rates a little higher in non-gold. Note Bernanke's tabulations of the factors contributing to decline in the money supply. Monetary forces explain the severity of the nominal decline, but it seems necessary to look at labor market policies and other interventions to explain why the real reaction to the nominal decline was so sharp.