Is it convenient to talk at the moment? oligopharm.ch Prof Summers, suppose I said that the general public thinks in terms of nominal dollars, not “real” (constant purchasing power) dollars. That would seem to be the same as what you are saying about TV prices and telephone services. I do see how that supports what I think is your main contention, that “to the public, the ‘cost of living’ is the amount of income you need to have a normal lifestyle.” What I don’t quite see is why you would argue in favor of an economic policy (NGDP targeting) based on what is obviously a fundamental (but common) “money illusion.” Does that explain the title of your blog? Oh no….
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