The Money Illusion

The Money Illusion is a book written by the renowned economist, Irving Fisher. In this book, Fisher explores the concept of money illusion, which refers to the tendency of people to think in terms of nominal values rather than real values. He argues that this leads to economic instability and misguided policy decisions.Fisher begins by discussing the history of money and its role in the economy. He then delves into the concept of inflation and how it affects people's perception of value. He argues that when prices rise, people tend to focus on the nominal value of their assets rather than the real value, leading to a false sense of wealth. This, in turn, can lead to economic bubbles and crashes.Fisher also discusses the role of interest rates in the economy and how they can be used to control inflation. He argues that by adjusting interest rates, policymakers can influence people's behavior and prevent economic instability.Throughout the book, Fisher uses real-world examples and data to support his arguments. He also provides practical advice for individuals and policymakers on how to avoid the pitfalls of money illusion and promote economic stability.Overall, The Money Illusion is a thought-provoking and insightful book that offers a fresh perspective on the role of money in the economy. It is a must-read for anyone interested in economics, finance, or public policy.This scarce antiquarian book is a facsimile reprint of the old original and may contain some imperfections such as library marks and notations. Because we believe this work is culturally important, we have made it available as part of our commitment for protecting, preserving, and promoting the world's literature in affordable, high quality, modern editions, that are true to their original work.