Purchasing power of the dollar

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Sean Evers, Managing Partner at Gulf Intelligence suggests, "The impact of the new Fed Chairman on the GCC could be a bit of a double-edged sword--on the one hand he is expected to raise interest rates and end a decade of cheap money which will make it more difficult and more expensive to fund massive expansion projects, but on the other hand these policies would strengthen the purchasing power of the dollar which has been on a slide for the last year."
This translates into greater purchasing power of the dollar, which will help to offset the smaller size of remittances in dollar terms, it added.
In 1972, Congress modified Social Security so that it would reflect the loss of purchasing power of the dollar, resulting in the adoption of the Consumer Price Index, or CPI.
However, El-Zayat disagrees, saying: "We have to measure apples with apples, meaning compare the purchasing value of the dollar at the moment with the same period in the US, then we will find that the purchasing power of the dollar has definitely decreased."
This keeps persistently reducing the purchasing power of the dollar of those at the lower rungs of the income ladder.
Lehrman, a member of the President Ronald Reagan's Gold Commission in 1981, makes a compelling case for returning to a classical gold standard, not only to protect the purchasing power of the dollar but to prevent the federal government from using the printing press to pay its bills.
Nominal prices are those that have not been adjusted to remove the effect of changes in the purchasing power of the dollar; they reflect buying power in the year in which the transaction occurred.
Overall, prices increase and the purchasing power of the dollar falls.
In other words, the purchasing power of the dollar rises.
The purchasing power of the dollar is increasing versus that of the euro.
Nonetheless he did add that the present stimulus will have a temporary positive effect on the Saudi riyal and other currencies pegged to it by increasing the purchasing power of the dollar and give a slight boost to the currencies linked to it.
Real prices are those that have been adjusted to remove the effect of changes in the purchasing power of the dollar; they usually reflect buying power relative to a reference year.
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