The study looked at over 100 years of U.S. data to see how inflation affects consumption, investment, and output. They found that moderate inflation actually has positive long-term effects on these factors, which goes against some economic models. Great ratios like consumption and investment rates are influenced by inflation, known as the Fisher effect. However, inflation doesn't play a big role in real economic movements compared to other factors like productivity and fiscal trends. After WWII, there were more regular inflation shocks, but their long-term impact on the economy was smaller than expected.