The Money Illusion

The Money Illusion is a book by Irving Fisher, a renowned economist of the 20th century. The book explores the concept of money illusion, which refers to the tendency of people to focus on nominal values rather than real values when making economic decisions. Fisher argues that this illusion can lead to a misunderstanding of economic phenomena, such as inflation and deflation, and can have negative consequences for individuals and society as a whole. The book is divided into three parts. In the first part, Fisher explains the concept of money illusion and provides examples of how it can distort economic decision-making. He also discusses the role of expectations in shaping economic outcomes. The second part of the book focuses on the relationship between money and prices. Fisher argues that changes in the money supply can have a significant impact on prices, but that this relationship is often misunderstood due to the money illusion. He also discusses the role of interest rates in the economy and how they are affected by changes in the money supply. In the final part of the book, Fisher discusses the implications of the money illusion for economic policy. He argues that policymakers should focus on real values rather than nominal values when making decisions, and that they should take into account the expectations of economic actors. He also discusses the role of international trade and exchange rates in the global economy. Overall, The Money Illusion is a thought-provoking book that challenges readers to think critically about the role of money in the economy and the impact of the money illusion on economic decision-making. 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.