In economics

Economics

Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...

, putty-putty describes an attribute of capital in financial models. Putty-putty capital can be transformed from flexible capital into durable goods

Durable good

In economics, a durable good or a hard good is a good that does not quickly wear out, or more specifically, one that yields utility over time rather than being completely consumed in one use. Items like bricks or jewellery could be considered perfectly durable goods, because they should...

then back again. This contrasts with putty-clay capital which can be converted from flexible capital into durable goods but which cannot then be converted back into re-investable capital.