The article explores how inflation affects the economy in the long run. By looking at how people search for trading partners, the researchers found that high inflation can reduce output and welfare if prices are bargained over after trades. However, if prices are set competitively, mild inflation can actually increase output and welfare. Inefficient outcomes were observed under both pricing mechanisms. When buyers can choose where to search, low inflation rates lead to more searching, while high inflation rates decrease it. The ideal scenario is no inflation, as it achieves the best allocation of resources and always improves welfare, even if it can boost output at low inflation rates.