money illusion


money illusion
noun
: the illusion that the face value of money is representative of its purchasing power : preoccupation (as of a wage earner) with wages rather than with real income or prices

Useful english dictionary. 2012.

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  • Money illusion — In economics, money illusion refers to the tendency of people to think of currency in nominal, rather than real, terms. In other words, the numerical/face value (nominal value) of money is mistaken for its purchasing power (real value). This is… …   Wikipedia

  • Money Illusion — An economic theory stating that many people have an illusory picture of their wealth and income based on nominal dollar terms, rather than real terms. Real prices and income take into account the level of inflation in an economy. Money illusion… …   Investment dictionary

  • money illusion —  The false perception of increased income when inflation is greater than the increase in income.  ► “Smokers experience money illusion in that they respond more to nominal price changes than to real changes.” (Journal of Business Research, Sept.… …   American business jargon

  • Illusion monétaire — L illusion monétaire est le comportement par lequel un agent économique confond une variation du niveau général des prix avec une variation des prix relatifs. Un agent est, par exemple, victime d illusion monétaire s il pense que seul son salaire …   Wikipédia en Français

  • illusion — 01. The idea that if you work hard enough, you re sure to succeed is an [illusion]. Lots of people work hard all their lives without really getting ahead. 02. Mirrors on the walls give the room the [illusion] of being much bigger than it really… …   Grammatical examples in English

  • illusion */*/ — UK [ɪˈluːʒ(ə)n] / US [ɪˈluʒ(ə)n] noun [countable] Word forms illusion : singular illusion plural illusions 1) a false or wrong belief or idea illusion that: Many people still have the illusion that full employment is possible.… …   English dictionary

  • illusion — il|lu|sion [ ı luʒn ] noun count ** 1. ) a false or wrong belief or idea: illusion that: Many people still have the illusion that full employment is possible. create/give/maintain the illusion: This description creates the illusion that we can… …   Usage of the words and phrases in modern English

  • money goggles — noun the illusion that a man appears more attractive to women when he is wealthy regardless of his appearance or personality …   Wiktionary

  • Quantity theory of money — In economics, the quantity theory of money is a theory emphasizing the positive relationship of overall prices or the nominal value of expenditures to the quantity of money. Origins and development of the quantity theory The quantity theory… …   Wikipedia

  • Neutrality of money — is the idea that a change in the stock of money affects only nominal variables in the economy such as prices, wages and exchange rates, with no effect on real (inflation adjusted) variables, like employment, real GDP, and real consumption.[1]… …   Wikipedia