Keynes's animal spirits vindicated: an analysis of recent empirical and neural data on money illusion
The tendency of people to think of money in nominal, rather than real, terms is now well documented by recent empirical data. In particular, experimental and neurobiological data provide new insights on the individual and subindividual (neurobiological processes) anchoring of money illusion. The sensitivity of the reward brain system to the nominal format of money may explain money illusion at a biological level and provide a sort of physical demonstration of Keynes animal spirits hypothesis. These findings make it more difficult to ignore the hedonic or emotional dimension of money, which lies outside the scope of homo economicus.
Volume (Year): 34 (2011)
Issue (Month): 2 (January)
|Contact details of provider:|| Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=109348|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ernst Fehr & Jean-Robert Tyran, 2000.
"Does Money Illusion Matter?,"
IEW - Working Papers
045, Institute for Empirical Research in Economics - University of Zurich.
- Louis Christofides & Amy Chen Peng, 2003.
"Contract Duration and Indexation in a Period of Real and Nominal Uncertainty,"
CESifo Working Paper Series
994, CESifo Group Munich.
- Christofides, Louis N. & Peng, Chen, 2006. "Contract duration and indexation in a period of real and nominal uncertainty," Labour Economics, Elsevier, vol. 13(1), pages 61-86, February.
- Christofides, L. & Peng, C., 2004. "Contract Duration and Indexation in a Period of Real and Nominal Uncertainty," Working Papers 2004-3, University of Guelph, Department of Economics and Finance.
- Cannon, Edmund & Cipriani, Giam Pietro, 2006.
"Euro-Illusion: A Natural Experiment,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 38(5), pages 1391-1403, August.
- Paul Davidson, 2010. "Behavioral economists should make a turn and learn from Keynes and Post Keynesian economics," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 33(2), pages 251-254, January.
- George A. Akerlof, 2009. "How Human Psychology Drives the Economy and Why It Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1175-1175.
- Besancenot, Damien & Rocheteau, Guillaume & Vranceanu, Radu, 2000. "Search, Price Illusion and Welfare," Journal of Macroeconomics, Elsevier, vol. 22(1), pages 109-124, January.
When requesting a correction, please mention this item's handle: RePEc:mes:postke:v:34:y:2011:i:2:p:331-352. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen)
If references are entirely missing, you can add them using this form.