Money illusion

Failing to take account of the effect of inflation. Employers may find workers more willing to agree to a pay rise of 4% when inflation is 6% than to accept a pay freeze when prices are falling. Savers should be happier about earning a return of 2% when inflation is zero than the prospect of earning 4% when inflation is 6%. See also real terms.

拓展学习：小词详解 | illusion