The Keynesian 'money illusion'—where people think in nominal rather than real terms—is fundamentally a cognitive constraint caused by the fact that our mental models are necessarily built from past experiences, and we traverse through time with 200-millisecond sensory delays, meaning we are always behind the curve of reality.

definitionpending

Speaker

Barry Ritholtz

Evidence Quote

the gray matter between our ears is filled with experiences that by definition are old

Source

Why Money Isn't What You Think: Barry Ritholtz on the Meaning of Money and How NOT to Invest ItExcess Returns
Created: 8/11/2026, 5:35:27 AM

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