NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Animal Spirits, Financial Crises and Persistent Unemployment

Roger Farmer

NBER Working Paper No. 17137
Issued in June 2011

---- Acknowledgements -----

This paper was previously circulated as "Animal Spirits, Rational Bubbles and Unemployment in an Old-Keynesian Model." I wish to thank Wouter den Haan and two anonymous referees for their careful reading of this paper and for their detailed comments. Thanks also to Jang-Ting Guo, Thomas Hintermaier, Mingming Jiang, Luca Pensieroso, Pietro Peretto and Dmitry Plotnikov for their helpful feedback on earlier drafts of this paper and to C. Roxanne Farmer for her invaluable editorial assistance. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.

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