Choice Review

Sumner (Bentley Univ.) provides his perspective on the causes of the Great Depression in this lengthy but excellent book. Primarily written for academic macroeconomists, this book does four important things. First, Sumner argues for the importance of high-frequency gold demand shocks as a force behind changes in short-term output. Key to his argument is the role of private gold hoarding, something overlooked by others. Second, in making his case, he provides an excellent economic history of the Great Depression, highlighting important monetary and public policy changes important to his narrative. Third, in presenting the evidence regarding specific historical episodes, he thoroughly summarizes the literature on the topic, highlighting what is important about each paper or theory and what it cannot explain. Fourth, Sumner's approach is an illustration of his argument that macroeconomists need better economic history and the history of economic thought to understand the past. The details, especially institutional ones, matter for understanding something as complex as an economy. This is most clear in the chapter on the gold panic of 1937. The book could be used in an economic history or intermediate macro course at selective institutions. Summing Up: Highly recommended. Upper-division undergraduates through faculty and researchers. --Joshua C. Hall, West Virginia University