This paper provides new evidence on a long-standing question asked by Shiller (1997): Why do we dislike inflation? I … inflation and their reactions to it. The predominant reason for people's aversion to inflation is the widespread belief that it …-income groups. Inflation also provokes stress, emotional responses, and a sense of inequity, as the wages of high-income individuals …

economic theory already has some answers, initiated by works of Martin Shubik. These micro-foundations are vitally important …

In standard macroeconomic models, the costs of inflation are tightly linked to the price dispersion of identical goods …. Therefore, understanding how price dispersion empirically relates to inflation is crucial for welfare analysis. In this paper, I … study the relationship between steady-state inflation and price dispersion for a cross section of U.S. retail products using …