The simple solution to the Pinocchio problem is...
He told a lie, his nose grows. The lie becomes a truth, so the nose shrinks back to normal. And then it stays normal until he tells his next lie.
After all, Pinoch didn't say "My nose is now going to grow and stay long". Just that it'd grow. Nothing about it shrinking again.
There. It took me two lines to do what that entire wikipedia article fretted about.