en.m.wikipedia.org
Shoe leather cost: Difference between revisions
← Previous edit
Next edit →
Shoe leather cost (edit)
Revision as of 16:06, 26 October 2016
155 BYTES ADDED
,  4 YEARS AGO
→‎Explanation: punct., template ref (edited with ProveIt)
In a period of high inflation people are discouraged to hold large amounts of cash because its value deteriorates quickly relative to the rising prices in the economy.
 
As a result, people tend to hold most of their money in a bank account and keep only very small amounts of cash with them. This causes them to make regular trips to their bank to withdraw cash to pay for goods and services. These regular trips wear out their shoe-leather, thus creating a ‘shoe'shoe-leather cost’cost'.
 
The shoe-leather cost is now used more generally to describe all the costs associated with having to hold small amounts of cash.<ref>{{cite web | url=​http://www.romeconomics.com/shoe-leather-cost-explained/ | title=Shoe-Leather Cost Explained | publisher=romeconomics.com | date=May 16, 2014 | accessdate=October 26, 2016 | author=Roland Mortimer}}</ref>
 
==See also==
Me, Myself, and I are Here
EXTENDED CONFIRMED USERS
89,133
EDITS
Content is available under CC BY-SA 3.0 unless otherwise noted.
Privacy policy
Terms of Use
Desktop
HomeRandomNearbyLog inSettingsDonateAbout WikipediaDisclaimers