Money illusion – the essence, social and economic costs and ways of their reduction in the light of sustainable development concept
DOI:
https://doi.org/10.12775/CJFA.2013.015Keywords
money illusion, sustainable development, behavioral financeAbstract
To be deceived, only or mainly, by nominal monetary categories while undertaking economic decisions, what is called a money illusion, may generate serious economic disturbances. In the light of sustainable development concept, it is negative phenomenon that may destabilize economic and social orders. It works mainly through distortion of income distribution among society and deepening market imbalances in time of crisis. Therefore, it is desirable to undertake activities that lead to reduction of money illusion, with special regard to the policy of state that supports stability of money purchasing power together with parallel intensive education of society about mechanics of money illusion, starting from secondary school level.
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