The more you spend, the less you save. Of course if your income rises, you can both spend more and save more. And if your income falls, you might choose to both spend less and save less. But this in no way denies the tradeoff between spending and saving that you face every day. When expected inflation is high, workers demand larger wage increases.
Employers acquiesce, expecting that they can pass higher costs on to consumers.
As a result, high expected inflation leads to rapid cost escalation, which in turn leads to high actual inflation. Perhaps it is simply that we have inflation because we expect inflation, and we expect inflation because we've had it. Just the opposite is true today. Now we have low inflation because we expect low inflation, and we expect low inflation because we've had it. Greenspan has bought for himself a favorable tradeoff between inflation and unemployment by giving the public many years of low inflation.