Oops, good point. Still, even without inflation, more bargaining power means less money for the other party: more money would go to the workers, and less would

Oops, good point. Still, even without inflation, more bargaining power means less money for the other party: more money would go to the workers, and less would go to the capitalists. This is even more direct than this inflation stuff, I should have mentioned it right away. As for how people store their money… I believe many rather important financial "products" are sensitive to inflation. I'm not a specialist, but here is an example: insurance. You give an insurance company something (money, bonds, debts…), and ask for money in return. Not now, but later. If that sum is not indexed to inflation somehow, it will be sensitive to it. One also need some cash to exchange all those bonds and stocks and what have you. By reducing the money supply, inflation may reduce the fluidity of the market, which may have effect on the market value of stocks.