| ID | 124547 |
| Title Proper | Gibson paradox |
| Other Title Information | evidence from China |
| Language | ENG |
| Author | Cheng, Hao ; Kesselring, Randall G ; Brown, Christopher R |
| Publication | 2013. |
| Summary / Abstract (Note) | Recent literature has advanced the view that the Gibson paradox, or the positive correlation of the price level with nominal interest rates, is nearly always a gold standard phenomenon. We argue that the Gibson correlation is more accurately classified as a statistical artifact of commodity money systems, with the gold standard merely representing one such system. Using new evidence from Chinese monetary history, this article gives evidence that the Gibson paradox appeared during China's silver-cored metallic standard era. Estimates obtained from recursive ordinary least squares specifications and vector auto-regressions performed, using the Shanghai Yinchai Rate and the Chinese Wholesale Price Index, confirm a Gibson correlation for China during the period 1873-1924. |
| `In' analytical Note | China Economic Review Vol.27, No.4; December 2013: p.82-93 |
| Journal Source | China Economic Review Vol.27, No.4; December 2013: p.82-93 |
| Key Words | Gibson Paradox ; Commodity Money ; Gold Standard ; Recursive OLS ; China ; Chinese - Economics ; Micro Economics - China ; Macro Economics - China ; Economic Policy - China ; Vector Autoregression |