Money Illusion and Strategic Complementarity as Causes of Monetary Non-Neutrality by Jean-Robert Tyran
English | 15 July 1999 | ISBN: 3540658718 | 244 Pages | PDF | 6 MB
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.