Chytilova Economic Literacy and Money Illusion

An Experimental Perspective
Erscheinungsjahr 2017
ISBN: 978-1-315-30445-8
Verlag: Taylor & Francis
Format: EPUB
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 200 Seiten

Reihe: Routledge Advances in Experimental and Computable Economics

In the last few years, there has been a growing tendency of central banks and other institutions to promote economic education by running a variety of educational programs. Significant resources are devoted by Federal Reserve Banks in the US and other central banks across the rest of the world to promote economic and financial education. It is clear that central banks believe that greater economic education is one factor that may enhance the effectiveness of monetary policy. However, the effect of economic education on behavior might not be as straightforward as that. This book therefore poses the question: is there any causal relationship between economic education and the achievement of optimum outcomes, or at least a significant reduction of sub-optimal behavior?

This book argues that money illusion can no longer be dismissed at the aggregate level. It examines the behavior of groups of subjects, endowed with different levels of economic knowledge, on a selection of market models with the help of laboratory experiments. Attention is primarily focused on the resurgent phenomenon of money illusion and coordination issues. It is assumed that the decision making of subjects is positively affected through incentives governed by the possession of economic knowledge, which may have a weakening, or even suppressive effect on money illusion itself. This offers a way to examine whether the impact of economic education on economic outcomes is consistent with consequent economic implications.

Economic Literacy and Money Illusion will be of interest to students of behavioural economics, experimental economics, and banking and finance, as well as policy makers and institutions.

Autoren/Hrsg.

Chytilova, Helena

Fachgebiete

• Wirtschaftswissenschaften Volkswirtschaftslehre Volkswirtschaftslehre Allgemein Wirtschaftstheorie, Wirtschaftsphilosophie

Inhaltsverzeichnis

Table of Contents

List of Figures

List of Tables

Introduction

Chapter 1 Early Theorizing about Money Illusion

Chapter 2 Rejection of Money Illusion

Chapter 3 Revival of Money Illusion

Chapter 4 Money Illusion and its Applications

Chapter 5 Economic Literacy and Money Illusion

Chapter 6 Economic Literacy and Money Illusion, an Experimental Approach

Chapter 7 Experimental Results

Index

Über Autor(innen)

Helena Chytilova is Assistant Professor of Intermediate Macroeconomics and Microeconomics at the University of Economics and Charles University, Prague.