Inflation doesn't just raise prices — it tricks you into staring at bigger dollar numbers instead of asking what those dollars can actually buy. A two percent pay raise sounds great until inflation is running at three percent. Your savings account pays more interest until you realize it's still losing purchasing power. This is “money illusion,” and it costs you real money.

In this episode, Justin Wolfers explains why inflation is like driving through fog: The signals are still there, but they're much harder to read. He walks through the mental shift you need to make — from thinking in dollar signs to thinking in purchasing power — then reveals five practical strategies you can use right now to protect yourself and your wallet. But there is also a deeper lesson revealed: Good economics is about asking what the number you’re seeing really means. Once you start asking it, you're ready to protect yourself during inflationary times.

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