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  2. Purchasing power - Wikipedia

    en.wikipedia.org/wiki/Purchasing_power

    A larger real income means more purchasing power, as it corresponds to the income itself. Traditionally, the purchasing power of money depended heavily upon the local value of gold and silver, but was also made subject to the availability and demand of certain goods on the market. [ 1 ]

  3. Purchasing power parity - Wikipedia

    en.wikipedia.org/wiki/Purchasing_power_parity

    Purchasing power parity (PPP) [1] is a measure of the price of specific goods in different countries and is used to compare the absolute purchasing power of the countries' currencies. PPP is effectively the ratio of the price of a market basket at one location divided by the price of the basket of goods at a different location.

  4. Relative purchasing power parity - Wikipedia

    en.wikipedia.org/wiki/Relative_Purchasing_Power...

    Relative Purchasing Power Parity is an economic theory which predicts a relationship between the inflation rates of two countries over a specified period and the movement in the exchange rate between their two currencies over the same period. It is a dynamic version of the absolute purchasing power parity theory. [1] [2]

  5. Real and nominal value - Wikipedia

    en.wikipedia.org/wiki/Real_and_nominal_value

    Real value takes into account inflation and the value of an asset in relation to its purchasing power. In macroeconomics, the real gross domestic product compensates for inflation so economists can exclude inflation from growth figures, and see how much an economy actually grows. Nominal GDP would include inflation, and thus be higher.

  6. Currency strength - Wikipedia

    en.wikipedia.org/wiki/Currency_strength

    Currency strength expresses the value of currency. For economists, it is often calculated as purchasing power, [1] while for financial traders, it can be described as an indicator, reflecting many factors related to the currency; for example, fundamental data, overall economic performance (stability) or interest rates.

  7. What is inflation? Here’s how rising prices can erode your ...

    www.aol.com/finance/inflation-rising-prices...

    Brief history of U.S. inflation. High inflation was last a major problem during the 1970s and 1980s — reaching 12.2 percent in 1974 and 14.6 percent in 1980 — when the central bank didn’t ...

  8. Working Americans are feeling ‘purchasing power of wages ...

    www.aol.com/finance/working-americans-feeling...

    Working Americans are feeling ‘purchasing power of wages’ waning, economist. Yaseen Shah. Updated July 29, 2022 at 11:23 AM. ... so the real purchasing power of wages is falling, and working ...

  9. Balassa–Samuelson effect - Wikipedia

    en.wikipedia.org/wiki/Balassa–Samuelson_effect

    The Balassa–Samuelson effect, also known as Harrod–Balassa–Samuelson effect (Kravis and Lipsey 1983), the Ricardo–Viner–Harrod–Balassa–Samuelson–Penn–Bhagwati effect (Samuelson 1994, p. 201), or productivity biased purchasing power parity (PPP) (Officer 1976) is the tendency for consumer prices to be systematically higher in more developed countries than in less developed ...