1. The Nov.-Dec. issue of Technology Review is one of the best in a long time. I liked the article on the fall-off in editorial participation at Wikipedia, the article on the challenges with making driverless cars practical, and especially the business report on health care cost containment
2. The Downfall of Money, about Germany’s hyperinflation. I will say more when I am finished. At this point, I am inclined to think that the key driver of hyperinflation was the politics of reparations. It was in the interest of both Allied and German politicians to overstate what Germany was being asked to pay. The Allied leaders could boast to their home constituents and the German politicians could ask for sympathy from theirs. Had Germany cut spending or raised taxes, this would have been perceived as making ordinary Germans suffer in order to pay the hated reparations. So the political process kept seeing deficit spending as the least-bad alternative. Many Germans suffered under hyperinflation, but this was politically easier to swallow than making it easier for the Allies to extract their tribute.
That makes me think Washington too will find it easier to hyperinflate when the real squeeze comes.
I’m reading the hyperinflation book too. I’m very curious to hear your professional economist’s take on the way the book deals with the economics. I also do not understand how Germany was supposed to make reparations in gold (effectively), given that the US was becoming protectionist and all the other protagonists also had large debts to pay (whether effectively in gold too I do not know). Thanks
I was disappointed with the economics. There were many points in the book where I wanted to see analysis that was informed by economic thinking. For example, what was the real revenue from the “inflation tax” and how much did this help the budget (I suspect not very much, if at all, but I would like to know)?
Thanks Arnold, it’s always interesting to hear a professional comment on books like these, which are written for lay people (and by lay people too). Invariably the professional is left unsatisfied.
For what it’s worth, I am nevertheless enjoying the book as it definitely brings the period to life. Next up might be Joseph Roth’s “Right and Left” (http://www.amazon.com/Right-Left-Joseph-Roth/dp/1585674923/ref=sr_1_1?ie=UTF8&qid=1383926222&sr=8-1&keywords=joseph+roth+left )