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.
Papers published on a yearly basis
Papers
More filters
TL;DR: In this article, the authors examine marketing's role in tapping potential in rural areas and suggest how firms can help potential consumers develop their purchasing power, thus creating a situation that benefits both consumers and the firm.
Abstract: Purpose – Rural consumers in emerging market countries are among the largest and fastest growing segments of the world's population. The purpose of this paper is to examine marketing's role in tapping potential in rural areas and suggest how firms can help potential consumers develop their purchasing power, thus creating a situation that benefits both consumers and the firm.Design/methodology/approach – The study is based on information on company web sites (of both multinationals and emerging market firms) and other published information regarding these firms' activities in emerging markets. This was supplemented by personal interviews conducted with marketing executives in India.Findings – It is found that marketing strategy must be developed de novo as strategies adopted in developed markets are not adapted to rural market conditions. This must be based on a thorough understanding of consumers, particularly their multiple roles as producers and consumers. In addition, firms need to focus on finding way...
35 citations
Journal Article•
TL;DR: In this paper, the authors discuss potential benefits and hurdles to establishing financial intermediation in cryptocurrency, as well as the possibility of managing the money supply to create a stable purchasing power cryptocurrency without the need for intermediation at all.
Abstract: Though Bitcoin currently enjoys a healthy niche, the aspirations of many in the project are grander: to supplant the existing regime of fiat currencies with cryptocurrencies, and to do so outside of normal political channels. Its primary practical obstacle is its purchasing power volatility, arising from a rigid money stock in the face of wide swings in demand. Nevertheless, the historical example of gold, another (much more successful) money commodity with a more or less rigid supply, illuminates the institutional prerequisites for purchasing power stability, economic efficiency, and sustained growth – namely a market of financial intermediaries whose liabilities denominated in the base money themselves circulate as media of exchange. This paper discusses potential benefits and hurdles to establishing financial intermediation in cryptocurrency, as well as the possibility of managing the money supply to create a stable purchasing power cryptocurrency without the need for intermediation at all. Such schemes ultimately require an existing market of intermediaries in order to provide any benefits, the emergence of which governments are for the moment well-positioned to prevent.
34 citations
TL;DR: In this paper, the authors analyzed the causes of repressed inflation in the Soviet consumer market during 1965-1989 and found that retail price subsidies, which rose from 4% of state budget expenditure in 1965 to 20% in the late 1980s, intensified consumer market disequilibrium.
Abstract: Using recently available Soviet material, this paper analyses the causes of repressed inflation in the Soviet consumer market during 1965-1989. We found that retail price subsidies, which rose from 4% of state budget expenditure in 1965 to 20% in the late 1980s, intensified consumer market disequilibrium. The provision of these subsidies had negative effects on the market by maintaining the purchasing power of households for consumer goods and by increasing the budget deficit. Furthermore, the demand of enterprises for consumer goods without legitimate permission tended to increase during 1965-1989.
33 citations
Book•
01 Jan 1990
33 citations
Posted Content•
TL;DR: In this article, the authors investigated whether Italian households' actual expenditure and willingness to buy durables (cars) are related to their inflation expectations and found that consumers with higher inflation expectations tend to have higher current than future expenditure, suggesting that an inter-temporal substitution mechanism is at work.
Abstract: This paper investigates whether Italian households’ actual expenditure and willingness to buy durables (cars) are related to their inflation expectations. In a high-inflation regime, as in the early 1990s, consumers with higher inflation expectations tend to have higher current than future expenditure, suggesting that an inter-temporal substitution mechanism is at work. Conversely, in a low-inflation environment, such as the one after the global financial crisis, higher expected inflation lowers households’ purchasing power and, thereby, spending (income effect). We also find that the composition of household balance sheets matters for explaining how inflation expectations shape spending behaviour.
33 citations