Households' and firms' subjective inflation expectations play a central role in macroeconomic and intertemporal microeconomic models. We discuss how subjective inflation expectations are measured, the patterns they display, their determinants, and how they shape households' and firms' economic...

This paper investigates determinants of financial saving in Tanzania during the period 1967-2010. Both OLS method and dynamic error correction (coitegration) model (ECM) approaches were employed to test the hypothesis that the interest rate elasticity of financial savings was positive during the...

The study investigated the determinants of national savings by employing the Johansen cointegration technique and error correction model to examine the short run and long run dynamics of the system using time-series data for Ghana over the 1975-2008 period. The study found all the variables to...

The world's major money printers are in trouble. The debt-based monetary architecture is going through serious stress. The recent banking and sovereign debt crises are systemic symptoms indicating an upcoming and unavoidable change in money creation methodology. This paper addresses the key...

The current debate whether zero interest rates are caused by a saving glut or a liquidity glut is resolved by the distinction between the market and the natural rate, where saving affects only the latter variable, and monetary policy mainly the first. This topic is linked to a second one: the...

Most empirical studies assume only monotonic preferences for households. Behavioral research however providessubstantial evidence that preferences for wealth are measured relative to a reference point. In this paper weintroduce and solve a two-period consumption and savings model for a...

The Treasury has, at times, suggested giving greater consideration to reforms to narrow the Saving-Investment gap. However, there has been less discussion of specific policy options for doing this. This paper helps to fill the gap by asking what policy reforms could help to narrow the...