# Gibson paradox

- Canonical URL: https://www.gerhardmerk.de/gibson-paradox
- Post ID: 592780
- Modified: 2023-07-25T20:59:53+00:00
- Language: en

## Definition

The fact that a central bank policy aimed at increasing the money supply not only raises the overall price level, but may also cause the interest rate to rise. It is true that an expansionary monetary policy will lead to a reduction in interest rates in the short term. But if the demand for credit is successfully stimulated (on condition that it succeeds; assuming this), the interest rate will then rise as a consequence. - See money, cheap, monetary policy, low interest rate policy, zero interest rate, stealth policy. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1