Shoe leather costs refer to the increased costs of transactions caused by inflation, particularly the time and effort that individuals and businesses expend to reduce their cash holdings as prices rise. As inflation erodes the purchasing power of money, people tend to make more frequent trips to the bank or ATM, leading to wear and tear on their shoes, hence the term. This phenomenon highlights how inflation can create inefficiencies in the economy by forcing people to spend more resources managing their cash.
congrats on reading the definition of shoe leather costs. now let's actually learn it.