Benati, Luca; Benigno, Pierpaolo - 2023
We argue that Gibson's paradox has nothing to do with the Gold Standard per se, and it rather originates from low …) zero-mean. Although the Gold Standard is the only historical example of such a regime, Gibson's paradox is a feature of a … targeting the levels of either prices or nominal GDP. We show that the mechanism underlying Gibson's paradox hinges on the …