ENGLISH

The money illusion.

By Irving Fisher

Book information

Publisher
Adelphi
Year
1928
Language
english
Format
PDF
Filesize
18 MB (18637637 bytes)
Pages
\266
Topic
Economy
Time added
2020-05-25 08:31:14

Description

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.

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