Cramer's Transactional Interpretation (TI) is applied to the ``Quantum Liar Experiment'' (QLE). It is shown how some apparently paradoxical features can be explained naturally, albeit nonlocally (since TI is an explicitly nonlocal interpretation). At the same time, it is proposed that in order to preserve the elegance and economy of the interpretation, it may be necessary to consider offer and confirmation waves as propagating in a ``higher space'' of possibilities.

The transactional interpretation of quantum mechanics, following the time-symmetric formulation of electrodynamics, uses retarded and advanced solutions of the Schrödinger equation and its complex conjugate to understand quantum phenomena by means of transactions. A transaction occurs between an emitter and a specific absorber when the emitter has received advanced waves from all possible absorbers. Advanced causation always raises the specter of paradoxes, and it must be addressed carefully. In particular, different devices involving contingent absorbers or various types of interaction-free measurements (...) have been proposed as threatening the original version of the transactional interpretation. These proposals will be analyzed by examining in each case the configuration of absorbers and, in the special case of the so-called quantum liar experiment, by carefully following the development of retarded and advanced waves through the Mach-Zehnder interferometer. We will show that there is no need to resort to the hierarchy of transactions that some have proposed, and will argue that the transactional interpretation is consistent with the block-universe picture of time. (shrink)