Optimum Savings under Repressed Inflation

John Bennett ()

Bulletin of Economic Research, 1991, vol. 43, issue 2, 189-94

Abstract: It is often argued that centrally planned economies have suffered from repressed inflation over long periods. The authors consider how the Keynes-Ramsey rule for optimum savings can be modified for such an economy. The rule that is obtained in effect incorporates the repercussions that are associated with the supply multiplier in short-term analyzes of repressed inflation. Copyright 1991 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Date: 1991
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