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Purchasing Power of the Dollar

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Purchasing power of the dollar
The amount of goods and services that can be exchanged for a dollar as compared with amount of a previous time period.

Purchasing Power of the Dollar
The goods and services that $1 can buy when compared to other currencies or to the dollar in a different time period. One can use the purchasing power of the dollar to gauge both the dollar's value in the currency market and to measure inflation. See also: Exchange rate.


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Fiat = faulty The following chart tracks what has happened to the purchasing power of the dollar and gold since the gold standard ended in 1971.
[ILLUSTRATION OMITTED] But unbeknownst to most Americans, the Fed's expansion of the money supply is in effect a hidden tax: the injection of more money into the economy diminishes the purchasing power of the dollars already in circulation and causes the price of goods and services to rise in terms of dollars.
Change in the purchasing power of the dollar, relative to the consumer price index, since the motto "In God We Trust" was added to the dollar bill in 1957 |-87% 7.
 
 
 
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