THE ECONOMISTS OF THE LOST CAUSE AND THE MONETARY EDUCATION OF JOHN R. COMMONS

Abstract

Wild price swings following World War I motivated some economists and their allies to start a stable money campaign. John R. Commons joined this campaign, and the story of his participation opens a window into an historical learning episode in which the campaign, though it failed, sparked intellectual efforts and interacted with events in ways that changed beliefs about relations between central bank actions, on the one hand, and unemployment, inflation, and economic growth, on the other. The paper dwells on Commons’ role and on the long learning experience that led participants to conclusions they could not have anticipated when they embarked on their campaign.