ABSTRACT
This chapter analyzes the results of the experiment to verify the hypotheses relating to nominal inertia, the educational effects and potential implications at the aggregate level. It also analyzes the nominal adjustment of subjects in the real environment, where the source of nominal inertia is not money illusion but coordination problems. The chapter focuses on an analysis of well-educated subjects and compare their performance under nominal versus real frame. It also focuses on the comparison of the well-educated and low-educated treatment under the nominal frame and their ability to cope with multiplied effects of money illusion. The relationship between real computers versus nominal computers enables to investigate individual irrationality and individual money illusion. The chapter discusses the connection between economic literacy and educational programs with respect to money illusion.
