Saving and inflation: Some international evidence

This note contains empirical results for the ‘disequilibrium’ saving function specification, in which uncertainty about relative prices in a cross-section sense plays a major role. Quarterly time series evidence from several OECD countries over the period 1967(II)–1980(III) lies in striking conformity with the view - suggested particularly by Deaton - that there is a positive relationship between unanticipated inflation and the saving ratio.