From: Dan Blatt <blat1>
Date: Thu, Jan 12, 2017 at 11:13 PM
Subject: Sumner, "The Midas Paradox."
To: Shefali Pandya <shefali_pandya>, Ron Gunn <rgunn>, "Robert F. Jene" <georgist>, Rich Gordon <richgor>, Philippe Destatte <destatte.philippe>, Philip Kotler <pkotler>, Olga Lazin <olazin>
To FUTURECASTS readers:
FUTURECASTS JOURNAL at www.futurecasts.com, presents a Book Review: Scott Sumner, "The Midas Paradox," a "New Keynesian" effort to disparage gold standard and other rules-based monetary policy disciplines as alternatives for the never-ending failures of Keynesian fiat money efforts at discretionary monetary policy. Sumner asserts that failures of previous monetarist efforts were simply due to a lack of commitment to the policy. In an analysis of the Great Depression, he explains away the monetary policy failures of 1929, 1932, 1933, and 1937. He asserts that with permanent and total commitment to montary inflation policy, the Federal Reserve would always succeed in achieving and maintaining economic expansion.
Sumner commendably presents his concepts in plain readily accessible prose, but demonstrates and reinforces his analysis with Keynesian mathematical models. The book is praised by a considerable number of modern economists.
However, Sumner’s analysis is narrowly focused. Hecherry picks the facts that can be interpreted as supporting his assertions about the Great Depression and generally relies on opaque aggregates that hide more than they reveal. With the exception of labor market factors, he confines the book generally to correlations rather than causation. The book thus actually reveals the stunning shallowness of his "New Keynesian" analysis and a deploarable ignorance of many of the ordinary aspects of the interwar economy that filled the pages of the contemporary financial press.
Dan Blatt, Publisher,