Money distribution leads to higher prices and reduced welfare in economies.
Price dispersion in a monetary economy can happen without everyone searching for the best deal at the same time. Sellers can set different prices because buyers have different amounts of money, making sellers not care about the price they choose. This leads to a range of prices being offered. This range of prices also means buyers have different amounts of money. This cycle continues, creating a distribution of prices and money. Having different prices can lead to higher prices than if there was only one price. This can make it harder for buyers to match the prices with the money they have. When there is inflation, this problem gets worse because prices go up.