Looking up something on Roger Farmer's website (at the prompting of Timothy Taylor of the JEP) , I found a trailer for his forthcoming book (OUP this year), which sounds very timely. I liked his 'Macroeconomics of Self-Fulfilling Prophecies' which should have caught on more than it seemed to. Actually Prof Farmer has two books coming out, one more and one less technical. Here's what he says about the less technical one:

Confidence, Crashes and
Self-Fulfilling Prophecies: How to Prevent the Next Great Depression  Oxford University Press, 2009,
forthcoming.

Confidence, Crashes and Self-Fulfilling Prophecies:
translates the arguments of Expectations Employment and Prices into
English and should appeal to both academics and laypersons.  The book
begins by explaining how existing schools of economic thought developed in
response to previous crises and why established ideas cannot help us today.
I explain why confidence matters and  how a loss of confidence can lead
to a depression. I argue that the stock market crash in 2008 led households
and firms to cut back on spending. This in turn caused a dramatic rise in
unemployment that will persist unless we take collective action to correct
the problem. I argue that the Fed should directly support the stock market
by buying and selling mutual funds in addition to its historical role
of pegging the interest rate.