- Purchasing power is the amount of goods or services that can be bought with a unit of currency at a given time.
- Inflation over time undermines the purchasing power of the currency.
- Central banks are adjusting interest rates to maintain price stability and purchasing power.
- One measure of purchasing power in the US is the consumer price index (CPI).
- Globalization has linked currencies more closely than ever, so protecting purchasing power around the world is critical.