As the purchasing power of money
is driven downward by its
Inflation refers to the increase in price of basic goods and services, as well as the decrease in overall purchasing power of money
. Being a rice-eating country, the hike in rice prices has hit Filipinos right in the gut.
Economists define inflation as "a general increase in prices and fall in purchasing power of money
." In recent years inflation has not been a hot topic since it has been relatively tame in fact, it has averaged less than 2% over the last decade.
It is customary to calculate the purchasing power of money
in different time periods in Turkey by using this simit and tea combination.
Over the course of the last one hundred years the purchasing power of money
has eroded at an average rate of 4.7% per year.
It is not that the purchasing power of money
is invariant-the goal of modern monetary theorists-but that it is not manipulated by the state.
Unlike a gold standard under which the purchasing power of money
could increase, a central bank managed fiat currency can only decline in purchasing power.
The Index measures economic inflation and is a direct measurement of the purchasing power of money
in various financial operations, which includes goods and services.
The change in price level affect on purchasing power of money
namely increasing price level decrease purchasing power of money
"so that an increase in the expected rate of inflation should cause a shift out of money and bonds and into consumer durables" Branson (1979).
da Silva asks, "who did the inflating?" Inflation, in the sense that I used the term there, is a decline in the purchasing power of money
, resulting in a general and prolonged rise in prices.
According to Lloyds TSB Private Banking, PS1 million in 1982 would provide the same value as PS3 million today, meaning the average purchasing power of money
has fallen at an average rate of 3.7% over the past three decades.