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.

A Framework for the Development of a National Crypto-Currency

Abstract: This paper seeks to provide a conceptual framework as to whether a central bank or a monetary authority should issue a crypto-currency given available technology and what are the consequences of doing so. Under the fiat standard the value and purchasing power of money has experienced an exponential decay, whilst prices have increased exponentially. Typically, a central bank is responsible for monetary and financial stability, including settlement and payment mechanisms. A proposed methodology is provided that involves both quantitative and qualitative analysis to measure the comparative monetary performance, stress testing and impact assessment of a new crypto-currency that includes backing by gold, silver and a basket of commodities. The scope of the proposed framework involves a monetary economic analysis, supported by a technological investigation, under the framework of Shari’ah compliance, to explore an impact assessment of the adoption of a national crypto-currency. The significance of this study is that, it provides a framework for the development of a new national crypto-currency, which retains its’ store of value in terms of monetary performance and price stability, that would also investigate whether it’s implementation is viable.

Agrarian change trends in latin america

Abstract: to the importance of technological change in agricultural production throughout the world and the social changes that accompany or follow it. Examples can indeed be found in Latin America of rural technological change being succeeded by social change, but that proposition alone does not provide a good characterization of the present rural scene. Great social changes are being incubated, there is much latent and some open conflict, but little technological change leading to development. This view of the situation finds support in many quarters, and amongst them, a recent report by the United Nations,2 which states . . . "Changes and innovations introduced in agriculture have not substantially altered the traditional characteristics of the system. Agricultural technique has suffered only slight modifications since 1955, with the result that the level of resource-use of both land and labour remains low." This is in part attributed to the continued extensive use of both land and labour. Other important economic traits of the rural sector are referred to in the report: there is no marked increase in the internal market for national products brought about by an increase in the purchasing power of the peasants; systems of commercialization that throw the negative burden of price-fluctuations on the rural producer have developed, while the rigid structure of his enterprise prevents it from adapting quickly and effectively to changes in market conditions, such as increased demands for certain products. Thus, to limit discussion to social change arising from the application of technology to agricultural production would tend to give an erroneous impression of the main stream of agrarian change. Clearly the development of technology is fundamental to the larger process of change, especially the diffusion of those innovations connected with public health and the population increase such as vaccines and antibiotics; those connected with transport such as the automobile and the bulldozer; those that have lead to the free communication of ideas such as the battery-powered radio and the transistor; and especially all those that have conjointly created modern cities and industrial activities in the midst of archaic agrarian societies and have thus presented rural people with alternative values, fresh explanations of social realities, and other ways of life.

Calculating the real return on a sovereign wealth fund

Abstract: We present a new methodology for calculating the real return on sovereign wealth funds (SWF) that share the investment objective of maximizing international purchasing power in terms of goods and services. Specifically, we modify the traditional approach for deflating the nominal return along three dimensions: the aggregator formula, the measure of international prices and the weighting scheme. We argue that a geometric average of price levels is an appropriate aggregator formula for capturing the deflationary effects of imports increasingly originating from low-cost countries, and that import prices paid by the SWF owner and weights reflecting the owner's import pattern are consistent with the investment objective. Our proposed approach, using the Norwegian Government Pension Fund Global as an illustration, raises the estimated average annual real rate of return over the sample period of 1998–2012 from 3.1% to 4.9%.

China Currency Appreciation Could Boost U.S. Agricultural Exports

Abstract: U.S. exports of soybeans and cotton to China have boomed in recent years, but the undervalued exchange rate for the Chinese yuan keeps prices of most other U.S. food and agricultural products more expensive than Chinese products. On average, Chinese retail food prices are about a fourth of U.S. prices. Land-extensive commodities like soybeans, cotton, corn, and wheat have relatively high prices in China, but soybeans and cotton are the only major crops that China imports in significant quantities. With an undervalued exchange rate China’s prices are not high enough to attract imports of grains or most livestock products. Appreciation of the Chinese currency would increase the purchasing power of Chinese consumers on world markets and increase China’s demand for imported commodities. However, Chinese policymakers are likely to maintain a cautious approach to currency appreciation, motivated in part by farm income and food security concerns.