Does Money Illusion Matter? Reply

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 3
Pages: 1063-71

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The data in Fehr and Tyran (FT, 2001) and Luba Petersen and Abel Winn (PW,2013) show that money illusion plays an important role in nominal price adjustment after a fully anticipated negative monetary shock. Money Illusion affects subjects' expectations, and causes pronounced nominal inertia after a negative shock but much less inertia after a positive shock. Thus PW provide a misleading interpretation both of our and their own data.

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:3:p:1063-71
Journal Field
General
Author Count
2
Added to Database
2026-01-25