The Money Illusion.

FISHER, Irving.

Item Number: 133587

New York: Alephi Company, 1928.

First edition of Fisher’s classic treatise on money. Octavo, original cloth. Association copy, inscribed by the author on the front free endpaper, “To Mr. John P. Frey with the compliments of Irving Fisher July, 1928.” The recipient, John P. Frey was a labor activist and president of the American Federation of Labor’s Metal Trades Department during a crucial period in American labor history. In 1918, Frey became chairman of the National Bureau of Economic Research, helping to raise money and incorporate the organization in 1920. He remained chairman of the board of directors until 1927. During the presidency of AFL president William Green, Frey was one of the most influential men in the American labor movement. Frey, long with Matthew Woll, president of the International Photo-Engravers Union of North America, worked behind the scenes of the AFL executive council to craft AFL policies and positions, heavily influencing the passive Green. Green’s rabid anti-Communism, his apolitical views, his refusal to consider governmental action as relief for working people’s problems, and unwavering support for craft unionism all came from Frey and Woll. Near fine in a very good price-clipped dust jacket, with Frey’s ownership stamp to the front free endpaper. An exceptional association.

In economics, money illusion refers to the tendency of people to think of currency in nominal, rather than real, terms. This is a fallacy as modern fiat currencies have no inherent value and their real value is derived from their ability to be exchanged for goods and used for payment of taxes. The term was coined by John Maynard Keynes in the early twentieth century, and Irving Fisher 1928 book, The Money Illusion, is one of the most important works on the subject.