Impact of Inflation on Consumer Life Style: Some Empirical Results on the Money Illusion and Consumer Purchasing Behaviour

Abstract
Investigates whether consumers are subject to the money illusion during a period of accelerated inflation. Looks at how consumers adjust their habits and purchasing behaviour in response to perceived price rises. Presents evidence from a survey carried out in the USA and Germany into differences between national reactions to economic changes. Reveals that consumers are generally not well informed about price indices.

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