The Midas Paradox

The Midas Paradox explores the causes of the Great Depression through the lens of monetary economics, challenging traditional views by emphasizing the gold standard's role in causing deflation and how labor regulations exacerbated unemployment.

Scott Sumner argues that sticky wages and prices created a paradoxical situation where commodity prices rose despite overall deflation, prolonging the crisis.

Drawing on historical data and monetary theory, the book advocates for better monetary regimes to prevent such disasters.