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.

Variability in healthcare treatment costs amongst nine eu countries - results from the healthbasket project

Abstract: Patient mobility gives rise to some fundamental information requirements, such as the nature of the basket of services offered in the different Member States, how these are defined, how often they are used for particular patients, what their costs are, what prices are paid for them, the quality with which they are delivered, and their cost-effectiveness. This knowledge will enable both Member States and the European Commission to formulate coherent policies on patient mobility in a way that will preserve both the financial viability of existing health systems and the treasured principles of universality, equity and accessibility. Further, if patients are to benefit from the opportunity offered by the European Union’s emerging healthcare market, they too will need to know the nature, quality and costs of services available elsewhere. Finally, international comparison based on good quality data is an important tool for learning from best practice within and between countries. However, international comparisons of service, cost and quality data are currently not routinely available for individual treatments. Up to now, healthcare cost comparisons have been usually made at an aggregate level and variations have been identified at the macro-level, e.g. in purchasing power parities (PPPs) per capita, as a percentage of GDP, distribution of expenditure per sector. Most fundamentally, analysis of international variation in the costs of individual services at the micro-level is difficult because of manifest limitations in the comparability of data. As a result, where cost data for individual treatments have become available, it has usually been unclear whether differences are due to (1) differences in the actual type of service delivered, e.g. in the technologies chosen or the human resources skills mix employed, (2) the intensity with which technologies or personnel are used per treatment episode (e.g. treatment time and length of stay), and (3) differences in input costs (e.g. costs of implant and hourly costs of personnel). The delivery of a seemingly identical service might vary across countries due to variations in (1) the definition of the start and end of a service (e.g. whether rehabilitation following a hip replacement is part of the hospital treatment or seen as a separate service with its own tariff); (2) the technology used (especially regarding the use of innovative and/or expensive technologies, e.g. cemented hip replacement vs costlier uncemented hip replacement); and (3) the accounting treatment of associated services (e.g.

The development of central banking

Abstract: Introduction On the occasion of the 300th anniversary of the Bank of England there is a natural tendency to look back at the historical record of central banks, to examine their development to the present time, and, more daringly, to speculate about their future. Although it is hard to depart from a chronologically ordered narrative (particularly since two of the authors are economic historians), we have tried to structure our paper by concentrating on the key functions undertaken by the central bank. The main objective of central banks, over the centuries, has been the maintenance of the (internal and external) value of the currency, and we, therefore, turn in section 1.2 to an historical account of central bank macroeconomic policy. While the maintenance of the value of the currency has, historically, almost always been achieved via the same instrument, varying the central bank's discount rate, this objective has not always meant the same thing. Under the classical gold standard the objective was cast in terms of metal convertibility: that is, the value of central bank notes was expressed in terms of their metal (gold) ‘content’, which central banks attempted to maintain at stated levels over time. The purchasing power of currency relative to goods in general (i.e. to a price index) was thus only indirectly an objective of central banks, with gold acting as the true nominal anchor. With the gradual erosion of the gold standard throughout the first half of the twentieth century, and its replacement everywhere by a pure fiat standard, the objective of central bank policy has now been recast in terms of price stability.

Aspects of the Optimal Management of Exchange Rates

Abstract: This paper analyzes aspects of the economics of the optimal management of exchange rates. It shows that the choice of the optimal exchange rate regime depends on the nature and the origin of the stochastic shocks that affect the economy. Generally, the higher is the variance of real shocks which affect the supply of goods, the larger becomes the desirability of fixity of exchange rates. The rationale for that implication is that the balance of payments serves as a shock absorber which mitigates the effect of real shocks on consumption. The importance of this factor diminishes the larger is the economy's access to world capital markets. On the other hand, the desirability of exchange rate flexibility increases the larger are the variances of the shocks to the demand for money, to the supply of money, to foreign prices and to purchasing power parities. All of these shocks exert a similar effect and their sum is referred to as the "effective monetary shock." It is also shown that the desirability of exchange rate flexibility increases the larger is the propensity to save out of transitory income. When the analysis is extended to an economy which produces traded and non-traded goods it is shown that the desirability of exchange rate flexibility diminishes the higher is the share of non-traded goods relative to traded goods and the lower are the elasticities of demand and supply of the two goods.

Money, Banking and Credit in Medieval Bruges

Abstract: In any economic system, whether medieval or modern, “money, banking, and credit,” are so closely connected and interwoven that they cannot be separated. Banking involves the extension of credit, and credit leads to the creation of additional purchasing power or, to use a different phrase, of money substitutes. The importance of credit and banking in medieval times should not be underrated, as is sometimes done by placing undue emphasis on later developments in England. Professor Usher is preparing a treatise on the early history of banking in Italy and Spain. This paper, which summarizes the results of a similar investigation into the origins of banking in Bruges, will therefore supplement Professor Usher's work, as far as the development of banking in the Low Countries is concerned.

Rising food prices: What should be done?

Abstract: "The sharp increase in food prices over the past couple of years has raised serious concerns about the food and nutrition situation of poor people in developing countries, about inflation, and—in some countries—about civil unrest. Real prices are still below their mid-1970s peak, but they have reached their highest point since that time. Both developing- and developed-country governments have roles to play in bringing prices under control and in helping poor people cope with higher food bills. In 2007 the food price index calculated by the Food and Agriculture Organization of the United Nations (FAO) rose by nearly 40 percent, compared with 9 percent the year before, and in the first months of 2008 prices again increased drastically. Nearly every agricultural commodity is part of this rising price trend. Since 2000—a year of low prices—the wheat price in the international market has more than tripled and maize prices have more than doubled. The price of rice jumped to unprecedented levels in March 2008. Dairy products, meat, poultry, palm oil, and cassava have also experienced price hikes. When adjusted for inflation and the dollar's decline (by reporting in euros, for example), food price increases are smaller but still dramatic, with often serious consequences for the purchasing power of the poor. National governments and international actors are taking various steps to try to minimize the effects of higher international prices for domestic prices and to mitigate impacts on particular groups. Some of these actions are likely to help stabilize and reduce food prices, whereas others may help certain groups at the expense of others or actually make food prices more volatile in the long run and seriously distort trade. What is needed is more effective and coherent action to help the most vulnerable populations cope with the drastic and immediate hikes in their food bills and to help farmers meet the rising demand for agricultural products." from Author's text