ABSTRACT
Under repressed inflation the government is faced with a dilemma when it desires to increase both savings and the incentive to work. The wider the free or uncontrolled market, the less the incentive to save but the more the incentive to work; the narrower the free market, the more the necessity to save and the less the incentive to work. For the government to achieve its desired solution to increase both savings and work, savings would have to be a perfect substitute for the consumption of goods and services forgone because of the controls.
