Money illusion

Volkswirtschaftslehre

Money Illusion and Coordination Failure

Economists long considered money illusion to be largely irrelevant. Here we show, however, that money illusion has powerful effects on equilibrium...

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Volkswirtschaftslehre

Does Money Illusion Matter?

Money illusion means that people behave differently when the same objective situation is represented in nominal or in real terms. To examine the...

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