Please explain how exactly a constrained monetary supply keeps politicians honest? Seems to me that is pretty much entirely dependent on an informed and participatory electorate.

I think a constrained monetary supply just means the politicians we elect have less influence over the economy than the people with the most wealth. In either scenario, there will be untrustworthy politicians who need to be out voted or voted out.

Blessing and a curse. With a flexible monetary supply, politicians can help ease the pains of boom bust cycles. They also can print currency and inflate their debt away. With a static monetary supply, they can't dampen the pain. But they also can't leverage the financial system for their short-term gains.

The last 60 years on a macro level have largely proved the Keynesian model. I think we're right to put faith in politicians in general. The solution might just be holding currency from another nation instead of your own.