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The savings-inflation puzzle

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  • Burkhard Heer
  • Bernd Sussmuth

Abstract

We find that inflation does not unanimously decrease savings in the US during the postwar period. This result is puzzling as it contradicts the implications of most monetary general equilibrium models.

Suggested Citation

  • Burkhard Heer & Bernd Sussmuth, 2009. "The savings-inflation puzzle," Applied Economics Letters, Taylor & Francis Journals, vol. 16(6), pages 615-617.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:6:p:615-617
    DOI: 10.1080/13504850701206510
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    3. Bert Van Roosebeke & Ryan Defina, 2022. "How Inflation Impacts Deposit Insurance: Real Coverage and Coverage Ratio," IADI Policy Briefs 6, International Association of Deposit Insurers.
    4. Bagus Arya Wirapati & Niken Astria Sakina Kusumawardhani, 2010. "Apakah ACFTA Merupakan Strategi yang Tepat untuk Penuntasan Kemiskinan yang Berkesinambungan?: Bukti dari Penurunan Tingkat Simpanan," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 13(1), pages 75-102, July.
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    6. Renáta Pitoňáková, 2018. "Private Sector Savings," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 1-17, March.
    7. Ghate, Chetan & Gopalakrishnan, Pawan & Saha, Anuradha, 2025. "The Great Indian Savings Puzzle," Economic Modelling, Elsevier, vol. 150(C).
    8. Salotti, Simone, 2008. "Global imbalances and household savings: the role of wealth," MPRA Paper 17729, University Library of Munich, Germany, revised 2009.
    9. Grolleau, Gilles & Weber, Christoph, 2024. "The effect of inflation on CO2 emissions: An analysis over the period 1970–2020," Ecological Economics, Elsevier, vol. 217(C).
    10. Naeem AKRAM & Muhammad Irfan AKRAM, 2015. "Savings Behaviour In Muslim And Non-Muslim Countries In Context To The Interest Rate," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 25(2), pages 161-177.

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    More about this item

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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