@article{IR,
      recid = {1416890},
      author = {Gruber, Marshall},
      title = {Understanding Gibson's Paradox},
      number = {IR},
      abstract = {Gibson’s paradox has confounded economists for decades.   Observing data regarding interest rates and inflation over  hundreds of years, the prediction that interest rates and  inflation would be positively correlated has proven false.   Stranger yet, the predicted correlation actually does hold  true and the paradox fades away when countries have  abandoned the gold standard, only for it to return without  explanation.  Alfred Herbert Gibson, who first noted the  paradox and for whom it is named, attempted to resolve the  paradox by theorizing that the correlation. Would be  delayed as interest rates would slowly react to the  inflation rate.  John Maynard Keynes and Milton Friedman,  perhaps the two biggest names in economics in the twentieth  century, also attempted to resolve the paradox with  different theories.  Alas, the data has not supported any  of the theories proposed.  This project proposes a new  revision to Irving Fisher’s original theory in an attempt  to explain some of the fluctuations of interest rates over  the past two centuries.},
      url = {http://library.usi.edu/record/1416890},
}