IDEAS home Printed from https://ideas.repec.org/h/pal/intecp/978-1-349-17028-9_5.html
   My bibliography  Save this book chapter

Savings and Inflation: Theory and British Evidence

In: The Determinants of National Saving and Wealth

Author

Listed:
  • Angus Deaton

    (Princeton University & University Of Bristol)

Abstract

British data, like those of other western countries, show unprecedently high savings ratios for much of the 1970s. While it is clear that treating asset erosion as negative income changes this picture, it does not restore any simple relationship between consumption and real income. In theory, it is wealth not income which determines consumption, and the paper shows that the standard life cycle model predicts a positive effect of unanticipated inflation on the savings rate. It is thus fully consistent with the disequilibrium savings story of the author’s earlier work. The analysis does not however support the inclusion of real liquid assets in conventional consumption functions.

Suggested Citation

  • Angus Deaton, 1983. "Savings and Inflation: Theory and British Evidence," International Economic Association Series, in: Franco Modigliani & Richard Hemming (ed.), The Determinants of National Saving and Wealth, chapter 5, pages 125-139, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-17028-9_5
    DOI: 10.1007/978-1-349-17028-9_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Françoise Charpin, 1992. "La détention de monnaie dans la théorie du cycle de vie," Revue Économique, Programme National Persée, vol. 43(3), pages 419-444.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:intecp:978-1-349-17028-9_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.