Money Illusion and Strategic Complementarity as Causes of Monetary Non-Neutrality
By:Jean-Robert Tyran
Published on 2012-12-06 by Springer Science & Business Media
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, economists have ever since the 1970s searched for alternative explanations for nominal rigidity. These explanations are all based on the assumption of fully rational economic agents, holding rational expectations. This book argues that money illusion has been prematurely dismissed as an explanation of monetary non-neutrality. Methods of experimental economics are used to investigate the real aggregate effects of money illusion. It is shown that money illusion in fact causes (short-run) real income effects if strategic complementarity prevails. Strategic complementarity is an important characteristic of naturally occurring macroeconomies and is a recurrent theme in most models explaining nominal rigidity.
This Book was ranked at 3 by Google Books for keyword economics explained.
Book ID of Money Illusion and Strategic Complementarity as Causes of Monetary Non-Neutrality's Books is 7ZzrCAAAQBAJ, Book which was written byJean-Robert Tyranhave ETAG "PziMI6YWlgQ"
Book which was published by Springer Science & Business Media since 2012-12-06 have ISBNs, ISBN 13 Code is 9783642468834 and ISBN 10 Code is 3642468837
Reading Mode in Text Status is false and Reading Mode in Image Status is true
Book which have "228 Pages" is Printed at BOOK under CategoryBusiness and Economics
This Book was rated by Raters and have average rate at ""
This eBook Maturity (Adult Book) status is NOT_MATURE
Book was written in en
eBook Version Availability Status at PDF is true and in ePub is false
Book Preview
Tidak ada komentar:
Posting Komentar