purchasing power
Currency's real value
Purchasing power is what money can actually buy—its real value in goods and services.
A dollar's purchasing power declines as prices rise: Inflation has eroded the purchasing power of the minimum wage.
The term also describes consumer spending capacity: The middle class has significant purchasing power.
Economists use it to compare living standards across time periods or countries.
Currency conversion value
Earnings adjusted for prices
- standard of livingEconomic quality of existence
- wage growthIncrease in compensation
- monetary policyCentral bank economic controls
- fiscal policyState spending and taxation
interest rates · money supply · economic indicator · price level · inflation rate · median income · income distribution · economic mobility
Gradual wearing away
- devaluationLowering of currency worth
- cost-of-livingPrice of basic needs
- depreciationAsset value reduction over time
- hyperinflationExtreme rapid price escalation
stagflation · deflation · shrinkflation · decline · weakening · diminishing · squeeze · crunch
Outlaying of funds
- shoppingAcquiring goods at retailers
- affordabilityState of being purchasable
- household budgetPlan for domestic expenses
- disposable incomeEarnings minus essential costs
retail · bargain · discount · value · savings · cost-conscious · comparison shopping · bulk buying
Abundance of money
- prosperityGood fortune, success
- financial securityReliable access to funds
- assetsOwned items of value
- capitalWealth used for investment
net worth · upper class · middle class · inequality · disparity · gap · elite · luxury
exchange rate
Currency conversion value
yen · pound · rupee · peso · yuan · franc · won · rand · baht · dirham
real income
Earnings adjusted for prices
- standard of livingEconomic quality of existence
- wage growthIncrease in compensation
- monetary policyCentral bank economic controls
fiscal policy · interest rates · money supply · economic indicator · price level · inflation rate · median income · income distribution · economic mobility · market basket
erosion
Gradual wearing away
- devaluationLowering of currency worth
- cost-of-livingPrice of basic needs
- depreciationAsset value reduction over time
hyperinflation · stagflation · deflation · shrinkflation · decline · weakening · diminishing · squeeze · crunch · loss
spending
Outlaying of funds
- shoppingAcquiring goods at retailers
- affordabilityState of being purchasable
- household budgetPlan for domestic expenses
disposable income · retail · bargain · discount · value · savings · cost-conscious · comparison shopping · bulk buying · stretch
affluence
Abundance of money
- prosperityGood fortune, success
- financial securityReliable access to funds
- assetsOwned items of value
capital · net worth · upper class · middle class · inequality · disparity · gap · elite · luxury · discretionary spending
- money functionsmedium of exchange, store of value, deferred payment
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- financial meansincome, money, earnings, salary, wages
- economic termssupply and demand, free market, bull market, bear market, inflation rate
- economic dataGDP, CPI, PPI, inflation rates, inflation rate
- GDPGDP growth, nominal GDP, real GDP, per capita, economic output
purchasing powerpoverty
Severe lack of resources
destitution · impoverishment · insolvency · penury · indigence
purchasing powerhyperinflation
Extreme rapid price escalation
inflation · currency devaluation · price inflation · currency collapse · depreciation
power, purchase, purchasing, purchased, purchaser, purchases, purchasers, repurchase, repurchased