Roger E. A. Farmer is Distinguished Professor of Economics at UCLA and the author of two new books on the current global economic crisis: How the Economy Works: Confidence, Crashes, and Self-Fulfilling Prophecies and Expectations, Employment, and Prices.
The dominant macroeconomic paradigm since the early 1980’s does not include unemployment as a factor, and it does not assign an independent role to confidence. But confidence is a scientific concept t… read more
Nobody wants to bail out bad banks, but to save a financial system from collapse requires preventing all banks from failing at the same time. A novel approach to supporting the whole but not the parts … read more
