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Money Illusion and Strategic Complementarity as Causes of Monetary Non-Neutrality

Tyran, Jean-Robert - 1999

In principle, money illusion could explain the inertial adjustment of prices after changes of monetary policy. Hence, money illusion could provide an explanation of monetary non-neutrality. However, this explanation has been thoroughly discredited in modern economics. As a consequence,...

Persistent link: https://www.econbiz.de/10013519170

Staggered Wage Setting Without Money Illusion : Variations on a Theme of Taylor

Buiter, Willem H.; Jewitt, Ian - 2021

In a number of influential recent papers, Taylor (1979a, b; 1980a, b) has analyzed the behaviour of an economy characterized by staggered over-lapping wage contracts and rational expectations. His model has the "Keynesian" feature that the second moment of the distribution function of real output...

Persistent link: https://www.econbiz.de/10013221541

Designing Indexed Units of Account

Shiller, Robert J. - 2021

An indexed unit of account is a unit of measurement defined using an index such as a consumer price index so that prices defined in terms of these units will automatically adjust to changing economic conditions. Evidence on sticky prices and money illusion, and evidence from countries (notably...

Persistent link: https://www.econbiz.de/10013218312

Sind gewinnsteuerliche Bemessungsgrundlagen bei drohender Inflation zu ändern?

Schneider, Dieter - In: Steuern und Rechnungslegung : Festschrift zum 65. …, (pp. 399-417). 2009

Persistent link: https://www.econbiz.de/10014564638

Are Chinese Individuals prone to Money Illusion?

Mees, Heleen; Franses, Philip Hans - 2011

Using a unique dataset collected through a well-established survey, which was carried out in China, we examine whether Chinese individuals are prone to money illusion. In contrast to the outcomes for US individuals, we find that the Chinese are more likely to base decisions on the real monetary...

Persistent link: https://www.econbiz.de/10010326436

Does Money Illusion Matter? An Experimental Approach

Fehr, Ernst; Tyran, Jean-Robert - 2000

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...

Persistent link: https://www.econbiz.de/10010262382

Expected inflation, expected stock returns, and money illusion: what can we learn from survey expectations?

Schmeling, Maik; Schrimpf, Andreas - 2008

We show empirically that survey-based measures of expected inflation are significant and strong predictors of future aggregate stock returns in several industrialized countries both in-sample and out-of-sample. By empirically discriminating between competing sources of this return predictability...

Persistent link: https://www.econbiz.de/10010263733

Prominent Numbers, Indices and Ratios in Exchange Rate Determination and Financial Crashes: in Economists’ Models, in the Field and in the Laboratory

Pope, Robin; Selten, Reinhard; Kube, Sebastian; von … - 2009

laboratory. Third, nominalist heuristics are incompatible with expected utility theory which excludes the evaluation stage, and … are also incompatible with prospect theory which assumes that, while the evaluation stage can involve systematic mistakes … model and identify what is a mistake, and b) decision makers can maximise. However, contrary to prospect theory, in the …

Persistent link: https://www.econbiz.de/10010274186

Money illusion and the long-run Phillips curve in staggered wage setting models

Vaona, Andrea - 2011

We consider the effect of money illusion - defined referring to Stevens' ratio estimation function - on the long-run Phillips curve in an otherwise standard New Keynesian model of sticky wages. We show that if households under-perceive real economic variables, negative money...

Persistent link: https://www.econbiz.de/10010277352

Studying the flypaper effect in the provinces of Iran (2000-2013)

Maddah, Majid; Jeyhoon-Tabar, Fozieh - In: Iranian economic review : journal of University of Tehran 20 (2016) 3, pp. 339-354

Persistent link: https://www.econbiz.de/10011588506