Even offering a zero rate of return induces saving, because the alternative (holding cash) carries a negative return.

factualpending

Speaker

Michael Munger

Evidence Quote

since the rate of return is negative on saving that people will actually save if you offer a zero rate of return so that's a positive

Source

Mike Munger on Microfinance, Savings, and Poverty 04/18/2011EconTalk
Created: 6/17/2026, 10:29:24 AM

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