Working Paper

The Savings-Inflation Puzzle

Burkhard Heer, Bernd Süssmuth
CESifo, Munich, 2006

CESifo Working Paper No. 1645
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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.

CESifo Category
Fiscal Policy, Macroeconomics and Growth
Keywords: inflation, savings, nominal interest taxation
JEL Classification: E210,E650