Siegel's paradox

proper noun

The phenomenon that uncertainty about future prices can theoretically push rational consumers to temporarily trade away their preferred consumption goods (or currency) for non-preferred goods (or currency), as part of a plan to trade back to the preferred consumption goods after prices become clearer.

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Meanings

proper noun
  1. economicsThe phenomenon that uncertainty about future prices can theoretically push rational consumers to temporarily trade away their preferred consumption goods (or currency) for non-preferred goods (or currency), as part of a plan to trade back to the preferred consumption goods after prices become clearer.

Origin

Identified by economist Jeremy Siegel in 1972.

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Cite this entry
APA

Siegel's paradox. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/Siegel's%20paradox

MLA

“Siegel's paradox.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/Siegel's%20paradox. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “Siegel's paradox,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/Siegel's%20paradox.

Source: Siegel's paradox on Wiktionary, CC BY-SA 4.0.