Gibson's paradox
Gibson's paradox proper noun: the observation that the rate of interest and the general level of prices are positively correlated.
Proper noun
Gibson's paradox
- The observation that the rate of interest and the general level of prices are positively correlated.
- For some years past Mr. A. H. Gibson has published a series of articles, mostly in the Bankers' Magazine, emphasising the extraordinarily close correlation over a period of more than a hundred years between the rate of interest, as measured by the yield of Consols, and the level of prices, as...[1930, John Maynard Keynes, “Historical Illustrations”, in A Treatise on Money […], volume II (The Applied Theory of Money), London: Macmillan and Co., […], →OCLC, book VI (The Rate of Investment and...
Origin of Gibson's paradox
Coined by the British economist John Maynard Keynes (1883–1946) in A Treatise on Money (1930; see the quotation), after the British economist Arthur Herbert Gibson, who noted the correlation in a series of articles for Bankers’ Magazine, particularly in its January 1923 and November 1926 issues (though it had previously been noted by the English economist Thomas Tooke (1774–1858)).
Questions about Gibson's paradox
- What does Gibson's paradox mean?
- Gibson's paradox means the observation that the rate of interest and the general level of prices are positively correlated.
- What part of speech is Gibson's paradox?
- Gibson's paradox is a proper noun.
Words near Gibson's paradox in the dictionary
Source and license
Adapted from Wiktionary: Gibson's paradox (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.
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