Real Value of Money

Pigou Effect
The Pigou Effect refers to the stimulus in economic activities that arise due to changes in the real value of money balances directly impacting consumption levels. It was first demonstrated in 1943 by A. C. Pigou of Cambridge University.
Real Value of Money
The real value of money refers to the actual purchasing power of money as corrected for inflation over time.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.