Must-Read: Roger E.A. Farmer (2013): Animal Spirits, Financial Crises, and Persistent Unemployment: “This article uses a rational expectations model with multiple equilibrium unemployment rates… …to explain financial crises. The model has equilibria where asset prices are unbounded above. I argue that this is an important feature of any rational-agent explanation of a financial crisis, since … Continue reading Must-Read: Roger Farmer (2013): Animal Spirits, Financial Crises, and Persistent Unemployment