Neuronal Cause Of 'Money Illusion': Inflation Felt To Be Not So Bad As A Wage Cut Date: March 27, 2009 Source: University of Bonn Summary: Many people view a rise in their income as a good thing ...

Money Illusion And The Market Date: August 27, 2007 Source: University of Copenhagen Summary: People often pay more attention to price tags than to real value.

This Illusion is the more serious because every man finds it harder to free his mind of this Illusion as to the money of his own country than of foreign money. 4.

Money illusion in the guise of a confusion of nominal and real interest rates may be partly to blame. When inflation is low, monthly nominal interest payments on mortgages are low compared to the ...

But this “Big Money Illusion” – that inflation is less than it really is – has them fooled. It’s made them think they’re a lot safer than they really are.

Money illusion posits that people have a tendency to view their wealth and income in nominal dollar terms, rather than recognize their real value, adjusted for inflation.

Consider Yale professor Robert Shiller's comments on the money illusion as we mentally account for our housing purchases, “Since people are likely to remember the price they paid for their house ...

As Inflation Rises, Beware of the Money Illusion. It May Cost You a Lot. People often focus on the actual amount of money they earn or spend, rather than its purchasing power ...

“Money Illusion,” a classic 1997 paper by the economists Eldar Shafir and Peter Diamond and the psychologist Amos Tversky, found that in periods of high inflation, employers can get away with ...

In a previous article, “The Dow Jones Industrial Average Without Money Illusion” (June 2, 2014), we examined the nominal vs. the inflation-adjusted path of the DJIA in the post-World War II years.