What makes inflation costly? Who bears these costs?

In my JMP, I explore an understudied mechanism:

Inflation impairs households’ ability to save for precautionary reasons

How? Let’s take a look at households’ liquid assets portfolios

#EconTwitter #Econjobmarket 60% ‼️of US households hold all their liquid assets in bank deposits or cash

Maybe surprisingly → this share has remained stable even in periods of high interest rates

Let’s label these households “Bank-Dependent”