"it is critical to increase the value of confidence in the value of private wealth in order to restore jobs permanently."
" In the face of continued pessimistic beliefs about asset values, no amount of fiscal stimulus would be capable of restoring full employment."
" ... increased public spending can cause a reduction in private spending..
even when the economy is in the midst of a depression. "
"..... a better policy to reduce unemployment would be an asset market intervention
of the kind suggested in Farmer (2009a, 2011b)."******
" Increasing business and consumer confidence by stabilizing the value of private wealth is an essential component of any recovery plan."
****** Farmer, Roger EA (2009a) “Confidence, Crashes and Animal Spirits”, NBER WP No. 14846, Economic Journal, forthcoming
Farmer, Roger EA (2011a) “Animal Spirits, Rational Bubbles and Unemployment
in an Old-Keynesian Model”, NBER WP # 13737, CEPR Discussion Paper 8439
