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 Indonesian Crisis: A Human Development Perspective

Abstract: Focusing on the impact of the 1997-99 economic crisis in Indonesia, the first part of this book discusses the economic situation in Indonesia, whilst the second elaborates on what happened to human capital during the crisis and the third examines its effect on purchasing power.

(1968) Structural Inflation-Lock and Balanced Growth

Abstract: This chapter presents the issue of inflation and balanced growth. Inflation is a notoriously plurivalent term. The main differences among the current uses regard primarily the source of the inflation, its intensity, and its duration. However, the common precipitate of all these denotations is a rise in money prices consequent to an increase in the purchasing power of the community through monetary channels alone. Most economists have concentrated their attention on the inflation of a moderate intensity that has been continually going on in almost all advanced economies with a well-organized money market and a monetary circuit encompassing all economic units, with only a standard guidance of the interest rate by the central banking authority, but without any direct government controls over prices, wages, and rents. That is, the standard concern has been with the inflation that propagates itself primarily through credit expansion—whether or not accompanied by a cheap money policy of the central monetary system.

Convergence of labour productivity in agriculture of the European Union

Abstract: Labour productivity is commonly considered as one of the most important parameters of development of economies, because it is conductive to reduction of costs, increase in supply of cheaper goods and services, higher dynamics of the market and higher purchasing power of societies, their wealth and competitive ability. But labour productivity is – at the backdrop of the EU countries – highly diversified, including in particular in agriculture where its level is much lower than in other sectors of the economy. The main objective of the presented paper is to examine and assess the changes in labour productivity in the EU agriculture in the context of the diversity of its level and dynamics of change underlying the identification of labour productivity convergence/divergence processes taking place in agriculture. The labour productivity convergence processes in the EU agriculture were analysed based on data from the period between 2005 and 2016, by testing two its basic types, namely sigma and beta convergence. The analysis applied statistical measures describing the degree of labour productivity differentiation in agriculture of the EU countries and cross-sectional regression function. The research showed that sigma and beta convergence exist in general in the EU-28 countries and in the group of the new Member States (UE-13). In the group of old Member States, however, no sigma convergence/divergence was identified, but statistically significant beta divergence was noted.

Trends in Natural Resource Commodities: Statistics of Prices, Output, Consumption, Foreign Trade, and Employment in the United States, 1870-1957

Abstract: With the publication of this volume Resources for the Future, Inc. has been the analogue of the National Bureau of Economic Research as far as providing basic data to researchers in the natural resource field is concerned. The authors have compiled time series spanning 88 years of the basic economic variables-price, output, consumption, foreign trade, and employment-covering about 90 percent of the natural resource commodities of the United States. In addition, they have provided standard series of population, Gross National Product, price indexes, etc., to be used for purposes of comparison and adjustment. The mere availability of this basic data-495 pages of it-is sufficient to justify a place for Trends in Natural Resource Commodities on the shelves of many research organizations. Messrs. Potter and Christy have also prepared summary charts for 32 of the most important commodities. In these logarithmic vertical scale charts, deflated price, the ratio of employment to output, per capita output and per capita consumption are plotted against time to give the reader a method of determining quickly the relative changes which have taken place since 1870. The commodity prices have been deflated by the Bureau of Labor Statistics wholesale price index in an attempt to compensate for variations in the purchasing power of money. In this reviewer's opinion, however, the series of charts would have been even more useful if a graph of the actual, non-deflated prices had also been included. Variations in the deflated price can occur with the market price remaining constant if the wholesale price index changes. In order to provide a reference standard, the employment-output ratios for each commodity are computed relative to the employment-output ratio in manufacturing for that year. The more casual reader is likely to be most interested in the first few pages which contain the "Highlights of the Data". Here, the authors have aggregated the commodities into the categories of agricultural, mineral, and forest products and calculated various indexes for these categories. The resulting movements of price, output, consumption, foreign trade and employment in these resource sectors are presented in easy-to-read charts such as the one reproduced below.

Which improves welfare more: A nominal or an indexed bond?*

Abstract: Economists have long argued that loan contracts should be indexed to remove the risks arising from fluctuations in the purchasing power of money: indexation however while eliminating one risk, substitutes another, arising from fluctuations in relative prices of goods. We present a theoretical framework which permits the relative merits of a nominal versus an indexed bond to be assessed in a general equilibrium setting.