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The Savings-Inflation Puzzle

Author

Listed:
  • Burkhard Heer
  • Bernd Süssmuth

Abstract

We find that inflation did 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 Süssmuth, 2006. "The Savings-Inflation Puzzle," CESifo Working Paper Series 1645, CESifo.
    • Handle: RePEc:ces:ceswps:_1645
    as

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    References listed on IDEAS

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    Cited by:

    1. Mineyama, Tomohide & Tokuoka, Kiichi, 2025. "Investigating how inflation expectations affect precautionary wealth," Japan and the World Economy, Elsevier, vol. 73(C).
    2. Bagus Arya Wirapati & Niken Astria Sakina Kusumawardhani, 2010. "Is ACFTA A Proper Strategy Of Sustainable Poverty Alleviation?: Proof From The Depletion Of Saving Rate," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 13(1), pages 75-102, July.
    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.
    5. repec:dau:papers:123456789/179 is not listed on IDEAS
    6. Renáta Pitoňáková, 2018. "Private Sector Savings," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 1-17, March.
    7. 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).
    8. 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.
    9. Ghate, Chetan & Gopalakrishnan, Pawan & Saha, Anuradha, 2025. "The Great Indian Savings Puzzle," Economic Modelling, Elsevier, vol. 150(C).
    10. Salotti, Simone, 2008. "Global imbalances and household savings: the role of wealth," MPRA Paper 17729, University Library of Munich, Germany, revised 2009.

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    Keywords

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    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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