“…While neoclassical economics predicts that inflation is not substantively harmful to individuals, evidence suggests that people strongly dislike inflation (Shiller, 1997), giving rise to a splintered view among economists about the actual economic, cognitive, and social costs 1 Social trust is at the core of financial transactions and economic exchange (Arrow, 1972) and is linked with economic growth and prosperity (Akçomak and Ter Weel, 2009;Algan and Cahuc, 2010;Knack and Keefer, 1997;Tabellini, 2010). The determinants of social trust include genetic diversity, governance status, political affiliations, conflicts, and repressions, among others (Ashraf and Galor, 2013;Bai and Wu, 2020;Conzo and Salustri, 2019;Guiso et al, 2016;Nikolova, Popova, and Otrachshenko, 2022;Nunn and Wantchekon, 2011;Otrachshenko, Nikolova, and Popova, 2023).…”