The Keynesian Prescription for Eliminating Unemployment Rests on the Money Illusion

Keynes believed that while other elements of the economic system, including prices, were set basically in real terms, workers bargained even ultimately only in terms of money wages--that unions insisted on minimum money wage rates downward, but would passively accept falling real wages in the form of rising prices, money wage rates remaining the same. The Keynesian prescription for eliminating unemployment therefore rests specifically on the "money illusion"--that unions will impose minimum money wage rates, but are too stupid to impose minimum real wage rates per se. 

--Murray N. Rothbard, Man, Economy, and State with Power and Market, 2nd ed. (Auburn, AL: Ludwig von Mises Institute, 2009), 783-784.