<p>Example: Apple. People "overpay" for their products, money that ends up in corporate savings and not in their competitors' coffers, sort of a black hole because Apple doesn't see enough investment opportunities. Let's assume these savings are in the form of government bonds. Is this type of money flow deflationary? Are there studies about money flow/inflation impact by different savings types? Is there a general rule how savings vs investments affect inflation?</p>

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2019-05-14T20:34:59.253Z
You're basically intuiting the notion of money velocity here. I'm not sure if it has been studied in relation to corporate savings though.
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2019-05-14T21:07:14.607Z
It certainly has been studied with respect to money sitting in reserve balances with the Fed https://www.stlouisfed.org/on-the-economy/2014/september/what-does-money-velocity-tell-us-about-low-inflation-in-the-us See also https://en.wikipedia.org/wiki/Liquidity_trap
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<inflation><investment><saving><deflation>
Are corporate savings deflationary?
user1050755
# Are corporate savings deflationary?

(Asked by: username_0 on 2019-05-14)

Example: Apple. People "overpay" for their products, money that ends up in corporate savings and not in their competitors' coffers, sort of a black hole because Apple doesn't see enough investment opportunities. Let's assume these savings are in the form of government bonds. Is this type of money flow deflationary? Are there studies about money flow/inflation impact by different savings types? Is there a general rule how savings vs investments affect inflation?

**Tags:** inflation, investment, saving, deflation
> **Comments:**
> **username_1**: You're basically intuiting the notion of money velocity here. I'm not sure if it has been studied in relation to corporate savings though.  
> **username_1**: It certainly has been studied with respect to money sitting in reserve balances with the Fed https://www.stlouisfed.org/on-the-economy/2014/september/what-does-money-velocity-tell-us-about-low-inflation-in-the-us See also https://en.wikipedia.org/wiki/Liquidity_trap  

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