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" There are two ways of mentally representing money, one based on actual dollars and another based on buying power. Practically everyone knows that the first way is “wrong” whenever there’s inflation. But both representations command attention and both affect decisions, sometimes unconsciously. This suggests that the money illusion may be a form of anchoring. "

William Poundstone , Priceless: The Myth of Fair Value (and How to Take Advantage of It)


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William Poundstone quote : There are two ways of mentally representing money, one based on actual dollars and another based on buying power. Practically everyone knows that the first way is “wrong” whenever there’s inflation. But both representations command attention and both affect decisions, sometimes unconsciously. This suggests that the money illusion may be a form of anchoring.