Skip to content

Economics Quote by Adair Turner, Baron Turner of Ecchinswell

“In economics, when you put together a highly elastic thing and a highly inelastic thing, you create extraordinary potential for turbulence, volatility, and for unstable prices.” quote by Adair Turner, Baron Turner of Ecchinswell
Download Open image
“In economics, when you put together a highly elastic thing and a highly inelastic thing, you create extraordinary potential for turbulence, volatility, and for unstable prices.”

Adair Turner, Baron Turner of Ecchinswell

About This Quote

Source Speech: Economic Forum, 2015

Combining highly elastic and inelastic elements creates market instability and price swings.

In simple terms: Mixing flexible and rigid parts leads to volatile prices.

Key Takeaway

Beware of pairing extremes in markets.

Themes

economics volatility market dynamics price stability risk management

Mood

cautious analytical strategic

Type

advisory analytical

When to use this quote

  • investment strategy
  • policy design
  • commodity trading
  • risk assessment

Key Concepts

elasticity inelasticity turbulence price formation

Questions to Reflect On

  • How do you mitigate instability when mixing elastic and inelastic assets?
  • What safeguards can stabilize prices?
A Different Perspective

Such pairings can also generate opportunities for arbitrage.

2.9 out of 5 (3 ratings)

More by Adair Turner, Baron Turner of Ecchinswell

Explore all 9 Adair Turner, Baron Turner of Ecchinswell quotes

More Economics quotes

Browse all 7,788 Economics quotes