Notice comes of a new book, How the Economy Works, by Roger Farmer. The publisher's blurb says it's “a jargon-free exploration of the current crisis, offering a powerful
argument for how economics must change to get us out of it.” The subtitle is more revealing: Confidence, Crashes and Self-Fulfilling Prophecies.

Prof Farmer's most influential book is The Macroeconomics of Self-fulfilling Prophecies, published in 1993. The idea has spread widely in the subsequent years. I'm looking forward to reading how the financial crisis fits in with his thesis that the macroeconomy can be seen through the lens of undesirable equilibria.