001416890 001__ 1416890
001416890 005__ 20240729093742.0
001416890 02470 $$2Handle$$ahttp://hdl.handle.net/20.500.12419/607
001416890 037__ $$aIR
001416890 245__ $$aUnderstanding Gibson's Paradox
001416890 336__ $$aAbstract
001416890 520__ $$aGibson’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.
001416890 7001_ $$aGruber, Marshall$$uUniversity of Southern Indiana
001416890 711__ $$aHonors Student Symposium Fall 2020
001416890 789__ $$whttps://youtu.be/DSfkmdSH72Q$$2URL$$eIsPartOf
001416890 904__ $$a2020-12-08T16:26:22Z$$baccessioned
001416890 904__ $$a2020-12-08T16:26:22Z$$bavailable
001416890 905__ $$a/collection_44/5/dublin_core.xml
001416890 907__ $$aGibson’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.
001416890 909CO $$ooai:library.usi.edu:1416890$$qGLOBAL_SET
001416890 980__ $$aHONORS STU SYMPO