The present paper provides an analytical discussion on a popular issue: the measurement problems associated with the inflation tax. It is well known that conventional national accounts definitions usually misplace the proceeds from the inflation tax: they are typically not subtracted from disposable income, and they are not included as part of the Government’s revenues “above the line.” Using a simple, perfect foresight monetary model developed by Calvo (1986, 1987), this paper analyzes the difference between macroeconomically relevant concepts of public and private saving, and their national accounts counterparts. The paper goes on to show that the national account aggregates create the impression that heavier reliance on the inflation tax on the part of the Government is associated with higher private saving, even in situations where the composition of government revenues does not have any effect on private saving.

Controlling inflation is among the most important objectives of economic policy. By maintaining price stability, policy makers are able to reduce uncertainty, improve price-monitoring mechanisms, and facilitate more efficient planning and allocation of resources, thereby raising productivity. This volume focuses on understanding the causes of the Great Inflation of the 1970s and ’80s, which saw rising inflation in many nations, and which propelled interest rates across the developing world into the double digits. In the decades since, the immediate cause of the period’s rise in inflation has been the subject of considerable debate. Among the areas of contention are the role of monetary policy in driving inflation and the implications this had both for policy design and for evaluating the performance of those who set the policy. Here, contributors map monetary policy from the 1960s to the present, shedding light on the ways in which the lessons of the Great Inflation were absorbed and applied to today’s global and increasingly complex economic environment.

Savings in the Modern Economy was first published in 1953. Minnesota Archive Editions uses digital technology to make long-unavailable books once again accessible, and are published unaltered from the original University of Minnesota Press editions.How will savings affect the future economy of the United States and other parts of the world? Will savings continue to aid economy expansion or will they lead, sooner or later, to difficult problems? What are the motivations that cause people to save? How has the pattern of saving changed in recent times? What is the effect of retirement and pension funds? What is the role of savings in periods of inflation? In economy depression? How can savings foster economy progress in underdeveloped countries?To provide a scholarly yet thoroughly practical basis for answers to questions like these, a group of distinguished economists pool their thinking in this volume. The series of 28 papers bring to the problem varied backgrounds and different viewpoints. Professors, bankers, government officials, and industrialists, representing national and international organizations and business enterprises, contribute papers and related comments. There is not always agreement in the discussion, and no quick and easy solutions are offered, but the resulting analysis is realistic and timely, yet long-range in approach and value.The material covers four broad topics: savings and economic policy; savings concepts, data, and behavior; the savings problem in underdeveloped countries (with specific reference to the Far East and Latin America); and savings and inflation.The volume is based on papers given at a conference on Savings, Inflation, and Economy Progress held at the University of Minnesota through the cooperation of the university's School of Business Administration and a number of sponsoring business firms.