Farmer, Roger E A - C.E.P.R. Discussion Papers - 2011
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 …