Inflation and the Savings Rate

Russell Davidson and James MacKinnon

Working Paper from Economics Department, Queen's University

Abstract: This paper examines two explanations of the observed positive relationship between inflation rates and saving rates in Canada and the United States. Several models are estimated using quarterly time series data from both countries, and the best of these are subjected to a variety of tests. One of the two explanations appears broadly consistent with the data. The observed relationship arises primarily because, in times of inflation, measured income and measured savings overstate the corresponding real and perceived quantities.

Keywords: inflation; savings; inflation; savings; income; wealth; mismeasurement (search for similar items in EconPapers)
JEL-codes: E21 (search for similar items in EconPapers)
Pages: 15
Date: 1982
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Citations: View citations in EconPapers (1)

Published in Applied Economics, 15, 1983

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Working Paper: Inflation and the Saving Rate (1979)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:493

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