Shoeleather cost

Shoeleather cost is the cost of inflation from reducing real money balances, such as the inconvenience of needing to make more frequent trips to the bank. Small open economy]]. An open economy that takes its interest rate as given by world financial markets; an economy that, by virtue of its size, has a negligible impact on world markets and, in particular, on the world interest rate. (Cf. large open economy.)

Definition

According to Macroeconomics by Mankiw (7th edition),

Shoeleather cost. The cost of inflation from reducing real money balances, such as the inconvenience of needing to make more frequent trips to the bank. Small open economy]]. An open economy that takes its interest rate as given by world financial markets; an economy that, by virtue of its size, has a negligible impact on world markets and, in particular, on the world interest rate. (Cf. large open economy.)