Gibson's Paradox

Gibson's Paradox
An economic observation made by J. M. Keynes during the period of the gold standard that there is a correlation between interest rates and the general price level. Keynes' finding, which he discusses in "A Treatise on Money" (1930), is a paradox because it is contrary to the view generally held by economists at the time, which was that interest rates were correlated to the rate of inflation.

In Keynes' research, interest rates were highly correlated to wholesale prices but had little correlation to the rate of inflation. In this paradox, interest rate movements are connected to the level of prices, not the rate of change in prices.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Gibson's paradox — was the observation that, during the gold standard era, the rate of interest and the general level of prices were observed to be correlated.The term was first used by John Maynard Keynes, in his 1930 work, A Treatise on Money . It was believed to …   Wikipedia

  • Raven paradox — The Raven paradox, also known as Hempel s paradox or Hempel s ravens is a paradox proposed by the German logician Carl Gustav Hempel in the 1940s to illustrate a problem where inductive logic violates intuition. It reveals the problem of… …   Wikipedia

  • Epimenides paradox — Epimenides from Promptuarii Iconum Insigniorum The Epimenides paradox is a problem in logic. It is named after the Cretan philosopher Epimenides of Knossos (alive circa 600 BC), There is no single statement of the problem; a typical variation is… …   Wikipedia

  • Zen Paradox — is an electronic music artist, primarily involved in the production of techno as well as other more experimental electronic sounds, from Melbourne, Australia. It is the principle name under which Steve Law records and performs electronic music.… …   Wikipedia

  • Fermi Paradox (album) — Infobox Album | Name = Fermi Paradox Type = Album Artist = Tub Ring Released = October 15, 2002 Recorded = 2002 Genre = Various Length = 40:04 Label = Underground Inc. Reviews = *Allmusic Rating|4|5 [http://www.allmusic.com/cg/amg.dll?p=amg… …   Wikipedia

  • List of paradoxes — This is a list of paradoxes, grouped thematically. Note that many of the listed paradoxes have a clear resolution see Quine s Classification of Paradoxes.Logical, non mathematical* Paradox of entailment: Inconsistent premises always make an… …   Wikipedia

  • Список парадоксов — …   Википедия

  • Rare Earth hypothesis — In planetary astronomy and astrobiology, the Rare Earth hypothesis argues that the emergence of complex multicellular life (metazoa) on Earth required an improbable combination of astrophysical and geological events and circumstances. The term… …   Wikipedia

  • Hubble's law — Physical cosmology Universe · Big Bang …   Wikipedia

  • John Wagner — Infobox Comics creator imagesize = 150 caption = birthname = birthdate = 1949 location = Pennsylvania deathdate = deathplace = nationality = American area = writer alias = John Howard T.B. Grover Mike Stott Keef Ripley Rick Clark Brian Skuter… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”