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.

The Colonial Loan-Office System in New Jersey

Abstract: IN COLONIAL times there were, broadly speaking, two types of paper money: the bill of credit and the loan-office bill. The more common was the bill of credit, which is similar to the more recent Civil War "greenback"-simply inconvertible money issued to pay the expenses of a military expedition or even the current costs of government. Provision was usually made for the retirement of this money by taxes over a period of years, but all too often new emergencies arose or were thought to arise, with the result that the bills had both longer life and lower purchasing power than was originally intended. The less common variety of paper money was the loan-office bill or land-bank note, which bears some resemblance to a modern bank note. Loan offices and land banks were the nearest things to a modern bank that existed in Colonial America. The loan offices did not receive deposits or discount drafts, but they did lend up to a maximum amount in loanoffice bills on real estate security. The land-bank idea appears to have had its origin in William Potter's book, The Key to Wealth, published in London in i650.' Private land banks were planned and perhaps tried on a small scale in South Carolina and Massachusetts during the last quarter of the seventeenth century.2 Barbados tried the scheme without success in I7o6.3 An attempt in South Carolina in I7I2 to finance an expedition against the Tuscarora Indians by establishing a public land bank or loan office was a dismal failure in practice but apparently a great success in theory,

Purchasing Power Parities of Currencies and Real Expenditures from the International Comparison Program: Recent Results and Uses

Abstract: The International Comparison Program (ICP) is a worldwide statistical initiative designed to estimate purchasing power parities (PPPs) that can be used as currency converters to compare the performance of countries around the world, thereby providing in-depth views of the distribution of resources worldwide. The 2011 round of the ICP was leveraged on the successful outcome of the 2005 round that included 146 countries, introducing various methodological improvements. The summary report and results from the 2011 round were released in April 2014 and provided PPPs, price levels indices, and expenditures in PPP terms for the GDP and major aggregates for 199 participating countries. More detailed results were released in June 2014 and a final comprehensive report in October 2014. The final report provided a more in-depth analysis of volume and per capita indices. The results stirred a strong debate among the user community because of their finding that the world has become more equal than previously thought. The purpose of this paper is to provide an overview of the main results and findings of ICP 2011, its governance framework and partnership with the Eurostat-Organization for Economic Co-operation and Development (OECD) PPP program, and the major methodological innovations that were implemented. The paper reviews the major uses of the PPPs generated by the ICP 2011 and the Eurostat-OECD PPP program, and concludes with thoughts about the future of the ICP.

The Impact of COVID-19 in Indian Economy – An Empirical Study

Abstract: The present pandemic situation has adverse deep impact on Indian business. Domestically, the impact of the corona virus pandemic COVID-19 could lead to slowdown in domestic demand. This will result in erosion of purchasing power due to job losses or pay cuts and slow-down effect of deferred demand will have a longer lasting impact on different sectors, especially where demand is discretionary in nature. India’s real GDP depleted to its bottom in over six years during 4Q 2019-20. India’s growth for next year 2020-21 is forecasted in between of 5.3% to 5.7%. The COVID-19, or coronavirus, pandemic has revealed many weaknesses in the global system. Despite our accumulated experience in crisis management, this virus has been able to isolate us all in our homes. COVID-19 has caused severe disruption for the Indian economy. The current corona virus pandemic could lead to a four per cent permanent loss to real Indian gross domestic product (GDP) .It is estimated for India’s Gross Domestic Product (GDP) growth rate to 1.9 per cent for 2020-21. This will be the lowest after India recorded growth rate at 1.1 per cent in 1991-92.The COVID 19 has disrupted major sectors, it’s clearly evident that various sectors tourism & aviation, telecom, auto sector, transportation are most impacted sectors that are facing negative repercussion of the present disaster . In the given situation, with all the retail sectors shutting down their business the livelihood of the workers are at optimum risk. The Government of many countries has given support to the employers to pay salaries to their employees. The present study is undertaken to study the impact of COVID-19 in various sectors considering the data which are secondary in nature, different appropriate statistical tools and techniques are applied for analysis and conclusion. On the basis of finding recommendations are suggested to overcome these adverse situations.

Money and Prices: A Model of Search and Bargaining

Abstract: This paper makes commodities divisible and incorporates bargaining into the search-theoretic model of money to determine the purchasing power of money (or price). It is shown that two monetary equilibria always coexist where flat money is universally accepted. The two equilibria differ in price, output, welfare and the velocity of money. Sunspot monetary equilibria exist in which money is universally accepted in all states of the economy. Multiplicity has novel implications on the effectiveness of currency substitution and exchange market intervention.

The Societal Impact of Economic Anxiety

Abstract: Loss of household income and purchasing power are shown to have broad and negative societal eects. The economic anxiety accompanying this loss has its strongest impact on consumer demand, which is the major factor in a nation's gross domestic product (GDP). Negative eects of economic anxiety are also found on the propensity to vote, political trust, societal satisfaction, and the quality of life. These eects were veried