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- Title
Szubsztantív vagy ökológiai racionalitás? A pénzillúzió esete.
- Authors
JÁNOS, VINCZE
- Abstract
The money illusion means an inability to distinguish between nominal and real value. After economists had discovered it, it was forgotten by the mainstream as being incompatible with rational decision-making. A rediscovery was made in behavioural economics and listed under the heading of cognitive biases. However, there exists a psychological paradigm ‒ the adaptive toolbox theory ‒ which sheds a different light on it. It sees the notion of the money illusion as unavoidable, as the objective, quantitative representation of economic “value” has to be nominal. Nominal representation of value may be ecologically rational, i. e. something that works reasonably well in certain circumstances. Having described the toolbox view and concept of ecological rationality, the author analyses the money illusion from this new vantage point, which brings forth some novel arguments. For instance, it strengthens the case for price stability in a strict sense. Also, it shows that price indices measuring the psychological feeling of the purchasing value of money may have a place alongside more traditional cost-of-living indices.
- Publication
Economic Review / Kozgazdasagi Szemle, 2018, Vol 65, p1097
- ISSN
0023-4346
- Publication type
Article
- DOI
10.18414/KSZ.2018.11.1097