Prosperity For All How To Prevent Financial Crises [Paperback]

In this important and provocative reassessment of the causes and consequences of economic downturns and stagnation, Roger Farmer argues that the central problem is recurring and debilitating crises of confidence in the stock market. The instability caused by the animal spirits creates unemployment and disruptions that have long-term effects. To create stability Farmer proposes that governments intervene in asset markets in a manner similar to the recent behavior of central banks. Written in clear, accessible language by a prominent macroeconomic theorist,Prosperity for Allproposes a paradigm shift and policy changes that could successfully raise employment rates, keep inflation at bay, and stimulate growth.

Chapter 1: Prosperity for All

Chapter 2: Keynes Betrayed

Chapter 3: The Demise of the Natural Rate Hypothesis

Chapter 4: Let's Stop Pretending that Unemployment is Voluntary

Chapter 5: Five Problems with New Keynesian Economics

Chapter 6: Why Unemployment Persists

Chapter 7: Wall Street and Main Street

Chapter 8: The New Keynesian Model Explained

Chapter 9: The Farmer Monetary Model Explained

Chapter 10: Keynesian Economics without the Consumption Function

Chapter 11: How to Prevent Financial Crises

The book is well written and will be of interest to economists who are looking for new
ways to think about macroeconomics. -Journal of Economic Literature

Though Farmer's argument is never cuddly, it accounts for the human emotion that mathematically driven models overlook: when businesspeople feel nervous, they don't invest, resulting in low values and volatile prices-and nervousness is the key emotion of our time. Technical but rarely arid and of interest to economists, investors, and policymakers. -Kirkus Reviews

This is an ambitious, thought-provoking and well-written book that addresses the big macroeconomic questl3F