We show that East Germans exhibit a higher degree of inflation aversion than their West German counterparts. Given the past, this is very plausible. While West Germans have learned and accepted to live with the manageable evil of low inflation for over 50 years, the mantra of price stability was preached in the former GDR. Together with the German-German currency reform and the inflation shock of the early 1990s, a high level of fear of inflation developed in East Germany, which is still reflected in surveys today. The results confirm the hypothesis that attitudes and preferences are strongly influenced by the institutional, economic and political environment in which they were formed.