Money illusion and strategic complementarity as causes of monetary non-neutrality

MaRDI QIDQ1294958zbMATH OpenFDO

Authors Jean-Robert Tyran

Publication date 19 August 1999

Published in Lecture Notes in Economics and Mathematical Systems (Search for Journal in Brave)

zbMATH Keywords

experimental economicsmonetary economics

Mathematics Subject Classification ID

Research exposition (monographs, survey articles) pertaining to game theory, economics, and finance (91-02) Macroeconomic theory (monetary models, models of taxation) (91B64)

Review text

This book uses the methods of experimental economics to investigate whether money illusion and strategic complementarity are causes of monetary non-neutrality. Experimental results show that non-neutrality after a shock is the rule rather than the exception, even if the stock was anticipated, and although the experimental design does not include nominal frictions (as in New Keynesian modulo). The theory used and the experiments performed are carefully described.

Recommendations

• Money illusion and coordination failure
• Equilibrium asset prices and investor behaviour in the presence of money illusion
• Economic growth under money illusion
• Monetary policy rules in a non-rational world: a macroeconomic experiment
• Endogenous money or sticky prices? Comment on monetary non-neutrality and inflation dynamics

Cited in

(4)

• Economic growth under money illusion
• Equilibrium asset prices and investor behaviour in the presence of money illusion
• Limited Rationality and Strategic Interaction: The Impact of the Strategic Environment on Nominal Inertia
• Money illusion and coordination failure

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