Modligliani died recently. I came to know of his "lifecycle hypothesis" recently. ”. In essence, this says that people save during their working lives in order to spend when their income wanes in old age. (obvious u said, but wasn't at that point of time as Keynes wrote in his “General Theory” that it was a “psychological law” that saving rose with income. and obviously according to keynes, economy is directly related to spending and saving was a vice ;-). before milton came in and brought in his zero inflation theory).