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Download The Money Illusion ePub

by Irving Fisher

Download The Money Illusion ePub
  • ISBN 1428633820
  • ISBN13 978-1428633827
  • Language English
  • Author Irving Fisher
  • Publisher Kessinger Publishing, LLC (June 8, 2006)
  • Pages 264
  • Formats azw lrf azw lit
  • Category Business
  • Subcategory Economics
  • Size ePub 1914 kb
  • Size Fb2 1510 kb
  • Rating: 4.6
  • Votes: 754

This scarce antiquarian book is a facsimile reprint of the original. Due to its age, it may contain imperfections such as marks, notations, marginalia and flawed pages. Because we believe this work is culturally important, we have made it available as part of our commitment for protecting, preserving, and promoting the world's literature in affordable, high quality, modern editions that are true to the original work.

In economics, money illusion, or price illusion, is the name for the human cognitive bias to think of money in nominal, rather than real, terms.

In economics, money illusion, or price illusion, is the name for the human cognitive bias to think of money in nominal, rather than real, terms. In other words, the face value (nominal value) of money is mistaken for its purchasing power (real value) at a previous point in time. Viewing purchasing power as measured by the nominal value is false, as modern fiat currencies have no intrinsic value and their real value depends purely on the price level.

The Money Illusion book. Irving Fisher may be better remembered for some highly mistaken predictions of good times just before the market crash in 1929. Kessinger Publishing is the place to find hundreds of thousands. Yet his was a life that well demonstrated the economist's caution: If you make predictions, be certain they outlive you. Irving Fisher despite all the derision he suffered was a shrewd analyst of how money disguises how money as a denominator of value conceals the important reality of economic life. Not great reading as lectures seldom are.

The Money Illusion - Irving Fisher. All books mentioned in the text will also be found in this list. Yale University, New Haven, Connecticut. This book is based on lectures given in the summer of 1927 before the Geneva School of International Studies. Chapter I: a Glance at the Money Illusion. As I write, your dollar is worth about 70 cents.

In economics, money illusion refers to the tendency of people to think of currency in nominal, rather . It may seem strange but it is true that we see the rise or fall of foreign money better than we see that of our ow. Irving Fisher.

In economics, money illusion refers to the tendency of people to think of currency in nominal, rather than real, terms. In other words, the numerical/face value (nominal value) of money is mistaken for its purchasing power (real value). This is false, as modern fiat currencies have no inherent value and their real value is derived from their ability to be exchanged for goods and used for payment of taxes. The term was coined by John Maynard Keynes in the early twentieth century.

New York: Alephi Company, (1928). Small octavo, original green cloth, original dust jacket. In The Money Illusion (a book based upon a series of lectures Fisher delivered at the Geneva School of International Studies), Fisher discusses the "hidden causes" and "harm results" of "all monetary units, including the dollar" (Preface). During the 1920s, Fisher actively supported the League of Nations. He campaigned for pro-League presidential candidate James Cox, and also spearheaded the Pro-League Independents. Recipient Ralph Wescott was an Independents staff member.

Printed in the United States of America. Wilder Publications, Inc. PO Box 10641. Blacksburg, VA 24060.

This scarce antiquarian book is a facsimile reprint of the original. Due to its age, it may contain imperfections such as marks, notations, marginalia and flawed pages.

The Money Illusion (1928). Book Source: Digital Library of India Item 2015. author: Fisher Irving d. ate. te: 2007-03-22 d. citation: 1928 d. dentifier. origpath: 59 d. copyno: 1 d.

Talk about The Money Illusion

If you want a succinct primer on money and inflation look no further. Irving Fisher (1867-1947) packs a load into 245 pages of "The Money Illusion." Especially helpful are the definitions of "absolute" and "relative" inflation. The two are usually found together, Fisher notes. This has lead to the dropping of the terms "absolute" and "relative" in latter-day discussions of inflation, resulting in much confusion.
Fisher is among the fathers of Monetarism and Neoclassical economics. We may add Supply-Side to the Yale University professor's progeny thanks to his vision of money as an inherently international issue. Fisher's articulation of a world economy lead by a Federal Reserve managing credit and inflation/deflation through the study of price indexes and directing nations adhering to a gold exchange standard sounds a good bit like the Supply-Side idea of using commodity indexes including gold as the major gauge of inflation.
If there are weaknesses in Fisher's teachings they might be classified under "Fed Worship" and "Scientism." The Federal Reserve creates an inflationary bias in the world's monetary system, Fisher rightly says. Consider this (p. 133): "This power (managing credit), rightly used, makes the Federal Reserve System the greatest public service institution in the world." Now consider the reverse of that. Fisher was forced to do so by the Great Depression that began the year after "The Money Illusion" was published. The Jan. 19, 1928 statement by Treasury Secretary Andrew Mellon, which Fisher includes in an appendix of quotations, should be pondered, especially by current-day folk tempted to view the Fed as a fountain of miracles.
Fisher's life and work are examples of how one era's progressives become the conservatives of later ones. The professor's emphasis on dollar stability and his finding that unbalanced government budgets are the leading cause of inflation would get him a chair at any of today's Republican friendly think tanks including the Hoover Institution (named after Fisher's interventionist friend Herbert Hoover). Yet we should remember Fisher was also a prophet of the new world order. During his times the U.S. was taking over world financial leadership from Great Britain. America's Industrial Revolution, began around the time of Fisher's birth, came into full bloom in the Roaring 20s with the start of mass production of automobiles, airplanes, and many other things we take for granted today. Fisher provided a great service by delving the implications of these developments. If I were to assign Fisher's contributions a place in the history of economic thought I would put them high up in the category of "anticipatory conservatism" along side those of his friend Joseph Schumpeter.
Yet "The Money Illusion" left me wondering if Fisher didn't fall into the trap well-encapsulated by F.A. Hayek's phrase "the misuse of knowledge." After all, what are prices? Can they be grouped into indexes that are then used to manage credit and make the monetary unit a deferred standard of payments? What is money? What is economics?
Suppose the naturalists like Hayek's teacher and colleague Ludwig von Mises are right. Does not building a mountain of "scientific" economics, undertaken sagely by Fisher and others with the best of intentions, set us up to fall further and harder than we otherwise would? Fisher's own life and experience with the Great Depression indicate that this may well be the case yet he admirably kept probing and finding new insights including a debt-deflation analysis very relevant to the Great Recession going on as I write this review.
"The Money Illusion" was written before Fisher's "fall," making it interesting on many levels. It is also a very approachable book, written in a worldly, tough-minded style. The title is provocative as are the book's contents. All this reminds us that in word and through deed, Irving Fisher was, above all, a great teacher.
I just started but it is very interesting. We take it for granted that inflation eats up the value of a dollar, but less than a hundred years ago, the concept was so clear.
Must read
First of all, this book is a short history lesson. Basically, everything in this book it’s involved around World War I and time before the war, and short period after the war. Only thing, in my opinion, that could be applied for today’s time, is that people still don’t understand the thing that Irving had written in his book, and that is Inflation and Deflation of the money.

I like to read articles and book that are related to History of economics, because there’s a lot that can be learned from past, that can be used in present time and future. Because, many things are happening over and over again, and we if educate our self enough about the past, we can avoid to be one of those who repeat the history.

You can read full review of this book on my Blog:
I love this book
This item does a good job in explaining how the purchasing power of money when tied with the US dollar gives us a false perception about the supremacy of the currency back in the early 1900's (before and after WW1). This also ocurred with other European currencies back then. The book goes on to explain alternatives-- in different units of measurements-- that could have been used by the population as a whole to avoid this 'mirage'. The use of an index, suggests the book, would also assist the reader in getting a clear understanding about how the purchasing power of any currency vary as economic circumstances in any given country change.
For anyone just getting inmersed in economic theory the book explains very clearly in lay terms how to make sense of general price changes in the economy and how this affects the purchasing power of any given currency. Elementary principles of what causes price changes back then are still valid today and so the book is a good source of knowledge in explaining this phenomenon. Alternatives available to the investor are suggested as to where to invest his/her money to minimize the erosion in purchasing power.
This book represents Fisher's seminal work on money and his recognition as the father of the economic school of Monetarism. In "The Money Illusion" he lays out the nature of money in a modern society and speaks to the false security of gold or any other standard to the "value" of money. He explains clearly the effects of deflation and inflation on currencies and emphasizes the importance of government and their monetary authorities in acting to stabilize their effects through responsible governance of the currency.

Fisher explains and advocates for the integration of the banking system into the Federal Reserve System specifically in the US and generally in all economies. He also recognize that the Fed is already acting as the primary counterbalance on the world economy in 1928 presaging Milton Friedman's critique of the Fed's behavior and incompetence in dealing with the Great Depression.

During the discussion on the gold standard Fisher while not rejecting it does illustrate that it will not provide stability and actually will become a limit as the economy outgrows the physical quantities available on the planet. If the currency is to have a gold basis then he advocates that production of gold should be as strongly regulated as the production of currency by governments and not be left in the hands of individuals or corporations.

The work clearly is the culmination of his early career as a neoclassical economist and lays the foundation for both Monetarism and his future work on debt deflation theory. It is a critical read for both neoclassical and heterodox followers of economics.