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OPTIMUM SAVINGS UNDER REPRESSED INFLATION
Author(s) -
Bennett John
Publication year - 1991
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.1991.tb00492.x
Subject(s) - economics , inflation (cosmology) , keynesian economics , multiplier (economics) , monetary economics , macroeconomics , theoretical physics , physics
It is often argued that centrally planned economies have suffered from repressed inflation over long periods. We 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 analyses of repressed inflation.