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Compulsory savings could reduce spending, but can it also bring down inflation? : The Indicator from Planet Money "Forced savings, you cowards!" Those aren't his exact words, but in 1940, macroeconomist John Maynard Keynes advocated for compulsory savings to help tame inflation during World War II. Could that work today?

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The Indicator from Planet Money

Can forcing people to save cool inflation?

Can forcing people to save cool inflation?

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Piggy banks sit on the shelf at the After The Quake store February 5, 2009 in San Francisco, California. (Photo by Justin Sullivan/Getty Images)
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Justin Sullivan/Getty Images
Piggy banks sit on the shelf at the After The Quake store February 5, 2009 in San Francisco, California. (Photo by Justin Sullivan/Getty Images)
Justin Sullivan/Getty Images

During World War II, the famous macroeconomist John Maynard Keynes wrote about an idea to help tame inflation: compulsory savings. The idea was to stash away a share of workers' paychecks into a government-issued savings account that could only be used after the war. This would help control inflation by reducing spending.

The original proposal didn't go very far, but with inflation still running hot, one economist thinks it's time to bring that idea back.

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