Abstract
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.
Original language | English |
---|---|
Pages (from-to) | 331-352 |
Number of pages | 22 |
Journal | Journal of Post Keynesian Economics |
Volume | 34 |
Issue number | 2 |
DOIs | |
State | Published - 1 Jan 2011 |
Externally published | Yes |
Keywords
- animal spirits
- experimental economics
- money illusion
- neuroeconomics
ASJC Scopus subject areas
- Economics and Econometrics