Topic
Purchasing power
About: Purchasing power is a research topic. Over the lifetime, 2714 publications have been published within this topic receiving 36866 citations. The topic is also known as: adjusted for inflation.
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TL;DR: The Peruvian experience appears to support this view as discussed by the authors, as it has shown that any economy with a purchasing power unit, particularly within the banking system, may have a stronger inflation feedback mechanism, that is, a given inflationary shock may produce more inflationary pressure.
12 citations
TL;DR: This paper presented a stylized exchange rate pass-through model of crude oil price formation for the purpose of understanding the price reactions of OPEC Member Countries to changes in the exchange rate of the US dollar against major currencies and the prices of other Members.
Abstract: This paper presents a stylized exchange rate pass-through model of crude oil price formation for the purpose of understanding the price reactions of OPEC Member Countries to changes in the exchange rate of the US dollar against major currencies and the prices of other Members. Our empirical results suggest that, in response to changes in the exchange rate, exporting countries tend to adjust their prices to secure a stable international purchasing power of oil revenues and to avoid suppressing market demand and losing market share.
12 citations
TL;DR: The authors examines the different types of deflators that are used to compare volume estimates of national income and production across countries and argues that these deflayers need to be tailored to the specific income concept used for study.
Abstract: This paper examines the different types of deflators that are used to compare volume estimates of national income and production across countries. It argues that these deflators need to be tailored to the specific income concept used for study. If the potential to spend concept is employed, a purchasing power deflator is needed. If a production based concept is used, a producing power deflator is necessary. The paper argues that present practice produces a hybrid deflator that fails both purposes when terms of trade shifts are large and offers a solution.
11 citations
01 Jan 2005
TL;DR: In this paper, a conceptual basis for a system of purchasing power parities by industry of origin is provided, where the authors identify how expenditure prices and output prices are related, and develop criteria on the basis of which either adjusted expenditure PPPs or output prices should be used for individual industries.
Abstract: This paper provides a conceptual basis for a system of purchasing power parities by industry of origin. On the basis of supply-use tables, the paper identifies how expenditure prices and output prices are related, and it develops criteria on the basis of which either adjusted expenditure PPPs or output PPPs should be used for individual industries. The paper then develops a PPP dataset for 45 industries (based on an underlying set of 221 3digit industries) capturing the total economy of 25 countries (24 OECD countries and Taiwan). This dataset is the first comprehensive dataset of industry PPPs covering such a large number of industries and countries.
11 citations
TL;DR: This article examined the impact of import and export price changes on economic welfare in Canada, and in each of the provinces, and examined how terms of trade shifts and fluctuations in the ratio of traded to non-traded goods prices affect the purchasing power of domestic production.
Abstract: This paper examines the impact of import and export price changes on economic welfare in Canada, and in each of the provinces. It examines how terms of trade shifts and fluctuations in the ratio of traded to non-traded goods prices affect the purchasing power of domestic production. Terms of trade shifts are shown to have a larger impact in the short run. Moreover, the paper shows that failing to account for terms of trade shifts, when analysing macroeconomic data, can lead to misinterpretations about the sources of growth or decline in consumption, investment and imports. The magnitude and direction of terms of trade fluctuations, and their impacts, vary by province and over time. Changes in commodity prices are shown to have important effects. The effect of terms of trade shifts is largest in Alberta and Newfoundland and Labrador, while Manitoba is relatively unaffected.
11 citations