ABSTRACT
This introduction presents an overview of key concepts discussed in the subsequent chapters of the book. The book expresses that money illusion might be a ubiquitous phenomenon, affecting various areas of economic life. It outlines the term "money illusion", which was first coined by Irving Fisher in 1928. The book also presents a critical assessment of money illusion from the point of view of the rational expectations hypothesis, which left no space for money illusion. It discusses the renewal of interest in money illusion, which emerged with the arrival of behavioral economics. The book provides a synthesis of the money illusion concept and economic literacy related to the investigation of the potential effects of economic education. It then presents the experimental method as a unique tool for investigation of whether a particular level of economic literacy, acquired through economic education, may account for improved decision-making and the alleviation of money illusion effects.
