This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
American Economic Review: Vol. 91 No. 5 (December 2001)
AER Volume. 91, Issue 5 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter
AER Forthcoming Articles
Full-text Article
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
AER Forthcoming Articles
Does Money Illusion Matter?
Article Citation
Fehr, Ernst, and
Jean-Robert Tyran. 2001. "Does Money Illusion Matter?."
American Economic Review,
91(5): 1239-1262.
DOI: 10.1257/aer.91.5.1239
DOI: 10.1257/aer.91.5.1239
Abstract
This paper shows that a small amount of individual-level money illusion may cause considerable aggregate nominal inertia after a negative nominal shock. In addition, our results indicate that negative and positive nominal shocks have asymmetric effects because of money illusion. While nominal inertia is quite substantial and long lasting after a negative shock, it is rather small after a positive shock.
Article Full-Text Access
Full-text Article
Authors
Fehr, Ernst (Institute for Empirical Research in Econ, U Zurich)
Tyran, Jean-Robert (U St Gallen)
Tyran, Jean-Robert (U St Gallen)
JEL Classifications
E31: Price Level; Inflation; Deflation
E52: Monetary Policy
E32: Business Fluctuations; Cycles
E51: Money Supply; Credit; Money Multipliers
E52: Monetary Policy
E32: Business Fluctuations; Cycles
E51: Money Supply; Credit; Money Multipliers
