The Midas Paradox: Financial Markets, Government Policy Shocks, and the Great Depression

Economic historians have made great progress in unraveling the causes of the Great Depression, but not until Scott Sumner came along has anyone explained the multitude of twists and turns the economy took. In The Midas Paradox: Financial Markets, Government Policy Shocks, and the Great Depression, Sumner offers his magnum opus—the first book to comprehensively explain both monetary and non-monetary causes of that cataclysm.  Drawing on financial market data and contemporaneous news stories, Sumner shows that the Great Depression is ultimately a story of incredibly bad policymaking—by central bankers, legislators, and two presidents—especially mistakes related to monetary policy and wage rates. He also shows that macroeconomic thought has long been captive to a false narrative that continues to misguide policymakers in their quixotic quest to promote robust and sustainable economic growth. The Midas Paradox is a landmark treatise that solves mysteries that have long perplexed economic historians, and corrects misconceptions about the true causes, consequences, and cures of macroeconomic instability. Like Milton Friedman and Anna J. Schwartz’s A Monetary History of the United States, 1867–1960, it is one of those rare books destined to shape all future research on the subject.

• Fighting Financial Crises: Learning from the Past
• American Default: The Untold Story of FDR, the Supreme Court, and the Battle over Gold
• The Courage to Act: A Memoir of a Crisis and Its Aftermath
• The Great Contraction, 1929-1933: New Edition (Princeton Classic Editions)
• Austerity: When It Works and When It Doesn't
• Inadequate Equilibria: Where and How Civilizations Get Stuck
• Shut Out: How a Housing Shortage Caused the Great Recession and Crippled Our Economy (Mercatus Center at George Mason University)
• Pop Internationalism (The MIT Press)
• A Monetary History of the United States, 1867-1960
• Governing Least: A New England Libertarianism (Oxford Political Philosophy)