The Foundations of Money Illusion in a Neoclassical Micro-Monetary Model.

This article discusses the microeconomic foundations of money illusion. Within a general neoclassical micro-monetary model of individual utility maximization, where money and commodity prices enter the objectives function, it is important to provide general conditions for the existence of demand fun...

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Publicado en:American Economic Review Vol. 64; no. 1; pp. 115 - 123
Autores principales: Dusansky, Richard, Kalman, Peter J.
Formato: Artículo
Publicado: American Economic Association Mar1974
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The Foundations of Money Illusion in a Neoclassical Micro-Monetary Model.
      aug:
        au:
          Dusansky, Richard
          Kalman, Peter J.
        affil: State University of New York, Stony Brook
      su:
        Economic demand
        Microeconomics
        Demand function
        Elasticity (Economics)
        Utility functions
        Fiscal policy
        Monetary policy
        Economic policy
      sug:
        subj:
          Economic demand
          Microeconomics
          Demand function
          Elasticity (Economics)
          Utility functions
          Fiscal policy
          Monetary policy
          Economic policy
      ab: This article discusses the microeconomic foundations of money illusion. Within a general neoclassical micro-monetary model of individual utility maximization, where money and commodity prices enter the objectives function, it is important to provide general conditions for the existence of demand functions which are free of money illusion. It is necessary to consider the general formulation of consumer utility maximization when real balances enter the utility function. Moreover, it is very crucial to examine the solutions to the first-order conditions and to determine whether these solutions become altered in response to the equi-proportionate change.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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