Shoe leather cost: Difference between revisions

'''Shoe leather cost''' refers to the cost of time and effort (more specifically the [[opportunity cost]] of time and energy) that people spend trying to counter-act the effects of [[inflation]], such as holding less [[cash]] and having to make additional trips to the [[bank]].<ref name="Mankiw2008">{{cite book|author=N. Gregory Mankiw|title=Brief Principles of Macroeconomics|url=http://books.google.com/books?id=b1r0JKgG5n4C&pg=PA262|date=27 September 2008|publisher=Cengage Learning|isbn=978-0-324-59037-1|page=262}}</ref> The term comes from the fact that more walking is required (historically, although the rise of the [[Internet]] has reduced it) to go to the [[bank]] and get [[cash]] and spend it, thus wearing out shoes more quickly.<ref name="Mankiw2008"/> A significant cost of reducing money holdings is the additional time and convenience that must be sacrificed to keep less [[money]] on hand than would be required if there were less or no [[inflation]].