Paradox of flexibility
id:
paradox-of-flexibility-250-13851003
title:
Paradox of flexibility
text:
The paradox of flexibility is that a debt deflation shock can create a situation where increased price and wage flexibility results in decreased total demand. This term was introduced by economists Paul Krugman and Gauti Eggertsson in the paper Debt, Deleveraging, and the Liquidity Trap: A Fisher-Minsky-Koo Approach.
The term was intended to complement the "paradox of thrift", a concept resurrected by John Maynard Keynes and Eggertsson's earlier work on the "paradox of toil".
Krugman and Eggerts
brand slug:
wiki
category slug:
encyclopedia
description:
original url:
https://en.wikipedia.org/wiki/Paradox_of_flexibility
date created:
date modified:
2020-12-18T01:09:02Z
main entity:
{"identifier":"Q7134452","url":"https://www.wikidata.org/entity/Q7134452"}
image:
fields total:
13
integrity:
13