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Ekonomické vzdělání a peněžní iluze, experimentální přístup
[Economic Education and Money Illusion: An Experimental Approach]

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  • Helena Chytilová
  • Zdeněk Chytil

Abstract

Economic education is considered of prime importance nowadays with direct implications for effectiveness of monetary policy. We aim to verify with an application of experimental method, whether economic education acquired has weakening or even suppressive effects on recently resurrected phenomenon of money illusion. If our hypothesis will be proved, previous evidence about signifi cant indirect effects of money illusion, causing significant long-lasting deviations of the economy from equilibrium after the shock, might be significantly alleviated, weakening thereby predictions of the New Keynesian model. Our findings suggest that even well-educated individuals do not have the ability to pierce the veil of money and do not form expectations properly after a fully anticipated monetary shock. As a result we can infer that money illusion is multiplied and nominal rigidities are intensifi ed even in the economy that consists of well-educated individuals.

Suggested Citation

  • Helena Chytilová & Zdeněk Chytil, 2014. "Ekonomické vzdělání a peněžní iluze, experimentální přístup [Economic Education and Money Illusion: An Experimental Approach]," Politická ekonomie, Prague University of Economics and Business, vol. 2014(4), pages 500-520.
    • Handle: RePEc:prg:jnlpol:v:2014:y:2014:i:4:id:966:p:500-520
    DOI: 10.18267/j.polek.966
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    More about this item

    Keywords

    convergence; economic education; money illusion; nominal rigidities; strategic complementarity;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • I29 - Health, Education, and Welfare - - Education - - - Other

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