Meanings
- economicsThe cognitive bias that leads people to think of money in nominal rather than real terms, mistaking its face value for its purchasing power at some point in time.
1 more example
In respect to our present problem, while there is a great field for research, the only perturbing influence of transcendent importance is that of an unstable monetary standard, and, as was seen in Chapter II, even that would make nothing more than a nominal difference in the results if it were not for the “money illusion.”
1930, Irving Fisher, The Theory of Interest: As Determined by Impatience to Spend Income and Opportunity to Invest It, New York: The MacMillan Company, page 322Synonyms: price illusion
Synonyms & antonyms
nounThe cognitive bias that leads people to think of money in nominal rather than real terms, mistaking its face value for its purchasing power at some point in time.
Cite this entry
money illusion. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/money%20illusion
“money illusion.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/money%20illusion. Accessed November 5, 2026.
WatkinsX Dictionary, s.v. “money illusion,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/money%20illusion.
Source: money illusion on Wiktionary, CC BY-SA 4.0.