The stock market crash of 2008 caused the Great Recession
Subtitle: theory and evidence
By: Roger Farmer
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 17479; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17479.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper argues that the stock market crash of 2008, triggered by a collapse in house prices, caused the Great Recession.  The paper has three parts.  First, it provides evidence of a high correlation between the value of the stock market and the unemployment rate in U.S.  data since 1929.  Second, it compares a new model of the economy developed in recent papers and books by Farmer, with a classical model and with a textbook Keynesian approach.  Third, it provides evidence that fiscal stimulus will not permanently restore full employment.  In Farmer's model, as in the Keynesian model, employment is demand determined.  But aggregate demand depends on wealth, not on income"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 12/15/2011.

Includes bibliographical references.

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Mode of access: World Wide Web.