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 RitholtzEvidence 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 It— Excess ReturnsCreated: 8/11/2026, 5:35:27 AM
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