Catchword: market for lemons

Note: Coined by George Akerlof, who won a Nobel Prize in Economics for the paper he wrote that popularized the term.

Filed Under: English, Money & Finance, Jargon

Part of Speech: n.

Quotation: Indeed, it would seem that a “market for lemons” is rapidly developing in credit markets. This is an extreme example of Gresham’s Law wherein investors believe that the disclosure by financial institutions of their credit exposure has been very poor and hence they have no choice but to price everything as if it were a “lemon” rather than a good quality credit.

Article or Document Title:
“‘Market for lemons’ rapidly developing” (URL)

Author:
Hugh Dougherty

Article, Document, Publication, Web Site:
The Australian

Publishing Location:
Sydney, Australia

Date of Publication:
Dec. 3, 2007

This catchword has yet to be researched.