Before revision:  One is to allow this hiring/firing propensity to depend on the financial fragility of firms . Quite interestingly, we find that in this case, the above transition survives but becomes second order. We also studied simple wage policies and confidence feedback effects, whereby higher unemployment increases the saving propensity of households. We observe several interesting effects, such as the appearance of acute endogenous crises, during which the unemployment rate shoots up before the economy recovers .
After revision:  One is to allow this hiring/firing propensity to depend on the financial fragility of firms , and introduce simple wage update policies. This leads to inflation (in the "good" phase) or deflation (in the "bad" phase), but leaves the overall phase diagram of the model essentially unchanged. We have finally explored the effect of simple monetary policies that attempt to contain rising unemployment and defang crises .