Does Money Illusion Matter? - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Does Money Illusion Matter? write by Ernst Fehr. This book was released on 2000. Does Money Illusion Matter? available in PDF, EPUB and Kindle.
Does Money Illusion Matter?
Does Money Illusion Matter? - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Does Money Illusion Matter? write by Ernst Fehr. This book was released on 2008. Does Money Illusion Matter? available in PDF, EPUB and Kindle. Money illusion means that people behave differently when the same objective situation is represented in nominal terms rather than in real terms. This paper shows that seemingly innocuous differences in payoff representation cause pronounced differences in nominal price inertia indicating the behavioral importance of money illusion. In particular, if the payoff information is presented to subjects in nominal terms, price expectations and actual price choices after a fully anticipated negative nominal shock are much stickier than when payoff information is presented in real terms. In addition we show that money illusion causes asymmetric effects of negative and positive nominal shocks. While nominal inertia is quite substantial and long-lasting after a negative shock, it is rather small after a positive shock.
The Money Illusion
The Money Illusion - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Money Illusion write by Scott Sumner. This book was released on 2023-05-06. The Money Illusion available in PDF, EPUB and Kindle. The first book-length work on market monetarism, written by its leading scholar. Is it possible that the consensus around what caused the 2008 Great Recession is almost entirely wrong? It’s happened before. Just as Milton Friedman and Anna Schwartz led the economics community in the 1960s to reevaluate its view of what caused the Great Depression, the same may be happening now to our understanding of the first economic crisis of the 21st century. Foregoing the usual relitigating of problems such as housing markets and banking crises, renowned monetary economist Scott Sumner argues that the Great Recession came down to one thing: nominal GDP, the sum of all nominal spending in the economy, which the Federal Reserve erred in allowing to plummet. The Money Illusion is an end-to-end case for this school of thought, known as market monetarism, written by its leading voice in economics. Based almost entirely on standard macroeconomic concepts, this highly accessible text lays the groundwork for a simple yet fundamentally radical understanding of how monetary policy can work best: providing a stable environment for a market economy to flourish.
Economic Literacy and Money Illusion
Economic Literacy and Money Illusion - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Economic Literacy and Money Illusion write by Helena Chytilova. This book was released on 2017-07-14. Economic Literacy and Money Illusion available in PDF, EPUB and Kindle. The concept of money illusion, a recently resurrected phenomenon of behavioral economics, is a real fact of economic life, the potential role of which should no longer be dismissed. Despite money illusion being utterly suppressed by mainstream economists, small deviations from rationality, together with trends in behavioral economics, alleviate the denial of money illusion induced by the rational expectations revolution. This book argues that money illusion seems to be a ubiquitous phenomenon, affecting various areas such as financial markets, housing markets, labor markets, consumption-saving decisions, and even development at the aggregate level induced by coordination issues. Furthermore, in light of the educational efforts of central banks and other institutions, it is worth considering whether solid economic training would provide guidance for the public regarding their decision-making and thereby alleviate the effects of money illusion. The emerging field of experimental economics provides a unique opportunity for us to verify the presence of money illusion. Specifically, attention is devoted to the experimental investigation of reduction in the direct and indirect effects of money illusion with respect to the level of economic literacy acquired through economic education. Economic Literacy and Money Illusion will be of interest to the general audience and to those who are interested in behavioral economics, economics education, and experimental economics, as well as to policy makers and institutions. Last but not least, it will help develop students’ interest in alternative economic theories. NB. The research and writing of this book was made possible with the support of the University of Economics, Prague, Faculty of Economics, Department of Economics.
The Money Illusion
The Money Illusion - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Money Illusion write by Irving Fisher. This book was released on 2014-03-27. The Money Illusion available in PDF, EPUB and Kindle. In economics, money illusion refers to the tendency of people to think of currency in nominal, rather than real, terms. In other words, the numerical/face value (nominal value) of money is mistaken for its purchasing power (real value). This is false, as modern fiat currencies have no inherent value and their real value is derived from their ability to be exchanged for goods and used for payment of taxes. The term was coined by John Maynard Keynes in the early twentieth century. Almost every one is subject to the "Money Illusion" in respect to his own country's currency. This seems to him to be stationary while the money of other countries seems to change. It may seem strange but it is true that we see the rise or fall of foreign money better than we see that of our own.-IRVING FISHER
