Discovering money illusion: The behavior of nominal prices subject to monetary shocks

• Main Authors: Evangelista, Charizze L., Manongdo, Gwendelyn M., Ong, Kathleen Margaret N., Sueno, Bahandi B.
• Format: text
• Language: English
• Published: Animo Repository 2009
• Subjects: Money illusion
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14726
• Institution: De La Salle University

This paper analyzes how money illusion affects the adjustment of prices to the new equilibrium after the imposition of different types of monetary shocks. This study is of importance because of having a prior knowledge of the behavior of prices after every shock can be very beneficial to the differe...