What is PURCHASING POWER? What does PURCHASING POWER mean? PURCHASING POWER meaning - PURCHASING POWER definition - PURCHASING POWER explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Purchasing power (sometimes retroactively called adjusted for inflation) is the number of goods or services that can be purchased with a unit of currency. For example, if one had taken one unit of currency to a store in the 1950s, it is probable that it would have been possible to buy a greater number of items than would today, indicating that one would have had a greater purchasing power in the 1950s. Currency can be either a commodity money, like gold or silver, or fiat money emitted by government sanctioned agencies. Most modern fiat currencies like US dollars are traded against each other and commodity money in the secondary market for the purpose of international transfer of payment for goods and services. As Adam Smith noted, having money gives one the ability to "command" others' labor, so purchasing power to some extent is power over other people, to the extent that they are willing to trade their labor or goods for money or currency. If one's monetary income stays the same, but the price level increases, the purchasing power of that income falls. Inflation does not always imply falling purchasing power of one's money income since it may rise faster than the price level. A higher real income means a higher purchasing power since real income refers to the income adjusted for inflation. Adam Smith used an hour's labour as the purchasing power unit, so value would be measured in hours of labour required to produce a given quantity (or to produce some other good worth an amount sufficient to purchase the same).
Views: 3212 The Audiopedia
PPP or Purchasing Power Parity is explained in hindi. As compared to market exchange rate between 2 currencies, PPP takes into consideration cost of living while comparing 2 currencies. Largest economies of the world based on nominal GDP and GDP based on PPP can be totally different. World Bank publishes PPP rates for all countries with respect to US dollar: https://data.worldbank.org/indicator/PA.NUS.PPP Share this Video: https://youtu.be/VtVeid_T6vQ PPP या परचेज़िंग पावर पैरिटी को हिंदी में समझाया गया है। दोनों मुद्राओं (कर्रेंसीज़) के बीच मार्किट एक्सचेंज रेट की तुलना में, PPP दोनों कर्रेंसीज़ की तुलना करने के लिए जीवन यापन के खर्च को ध्यान में रखते हुए तुलना करता है। नॉमिनल जीडीपी पर आधारित दुनिया की सबसे बड़ी अर्थव्यवस्था और पीपीपी पर आधारित जीडीपी अलग हो सकती है। Subscribe To Our Channel and Get More Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g To access more learning resources on finance, check out www.assetyogi.com In this video, we have explained: What is purchasing power parity theory? How to compare salary in India and USA or any other county? How the cost of living affects the value of a salary package? How purchasing power parity comparison is done? How purchasing power in India is different compared to the USA? Why PPP rate is different from currency exchange rates? How to compare the PPP rate of different currency? How to compare the income in two different countries using purchasing power parity? Where India ranks in the world based on GDP based on PPP? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Pinterest - http://pinterest.com/assetyogi/ Google Plus – https://plus.google.com/+assetyogi-ay Twitter - http://twitter.com/assetyogi Facebook – https://www.facebook.com/assetyogi Instagram - http://instagram.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Hope you liked this video about “Purchasing Power Parity (PPP)”.
Views: 235415 Asset Yogi
This Video Give the basic concept of What is Purchasing & Purchasing Power ? Urdu / Hindi ZPZ Education Channel Link: www.youtube.com/channel/UCwFzeQDf9cGm_ZeTXV_t5SA
Views: 2980 ZPZ Education
How to Prepare Indian Economy for UPSC CSE Prelims 2019 ? Video Link : https://youtu.be/SYuTBEMmzJ4 To Join Economy Prelims Telegram Channel - https://t.me/NEOIASECONOMYPRELIMS To Join Economy Mains Channel https://t.me/NEOIASECONOMYMAINS Economy Previous Year Questions Link : https://drive.google.com/open?id=1zmjyKUMAttVddsQ6wInX1zGBKfy-jU0q Purchasing Power Parity ( PPP ) of Indian Economy for CIVIL SERVICES EXAMINATION explained in the simplest way. NEO IAS e-learning classes is an online program which aims to create CIVIL SERVANTS for the development of the nation by providing the video series of complete topics that are relevant for the CIVIL SERVICES (IAS/IPS) Exam.
Views: 84444 NEO IAS
Why does your monthly rent today cost just as much as the down payment your grandparent's put on their home 70 years ago? The answer is inflation. "Inflation is taxation without legislation." -- Milton Friedman Fuente: http://www.economicfreedom.org/videos/
Views: 1075 Instituto Acton
Audio version of the Mises Daily article for October 26, 2009. Written by Ludwig von Mises and read by Jeff Riggenbach. http://mises.org Link to the text version of this audio presentation: http://mises.org/daily/3803 DISCLAIMER: The Ludwig von Mises Institute has given permission under the Creative Commons license that this audio presentation can be publicly reposted as long as credit is given to the Mises Institute and other guidelines are followed. More info at: http://creativecommons.org/licenses/by/3.0/us/ This YouTube channel is in no way endorsed by or affiliated with the Ludwig von Mises Institute, any of its lecturers or staff members. * * * * * Ludwig von Mises was the acknowledged leader of the Austrian School of economic thought, a prodigious originator in economic theory, and a prolific author. Mises's writings and lectures encompassed economic theory, history, epistemology, government, and political philosophy. His contributions to economic theory include important clarifications on the quantity theory of money, the theory of the trade cycle, the integration of monetary theory with economic theory in general, and a demonstration that socialism must fail because it cannot solve the problem of economic calculation. Mises was the first scholar to recognize that economics is part of a larger science in human action, a science that Mises called "praxeology." Links to selected online books and essays by Ludwig von Mises: Human Action: A Treatise on Economics http://mises.org/resources/3250 Audio book version: http://www.youtube.com/view_play_list?p=ED883527337E557B Economic Calculation In The Socialist Commonwealth http://mises.org/resources/448/ Audio book version: http://www.youtube.com/view_play_list?p=FADF1FD6F2C0B8EF Theory and History: An Interpretation of Social and Economic Evolution http://mises.org/th.asp Audio book version: http://www.youtube.com/view_play_list?p=E52EEC7BFA3115F0 The Anti-Capitalistic Mentality http://mises.org/resources/1164/ Marxism Unmasked: From Delusion to Destruction http://mises.org/resources/4035/ Interventionism: An Economic Analysis http://mises.org/resources/1217/ Omnipotent Government: The Rise of Total State and Total War http://mises.org/resources/5829/ Socialism: An Economic and Sociological Analysis http://mises.org/resources/2736 Economic Policy: Thoughts for Today and Tomorrow http://mises.org/etexts/ecopol.asp The Causes of the Economic Crisis, and Other Essays Before and After the Great Depression http://mises.org/resources/3361 Epistemological Relativism in the Sciences of Human Action http://mises.org/resources/117 Bureaucracy http://mises.org/resources/875 Economic Freedom and Interventionism http://mises.org/efandi.asp Capitalism, Happiness, and Beauty http://mises.org/freemarket_detail.aspx?control=502 Historical Setting of the Austrian School of Economics http://mises.org/hsofase.asp Liberty and Property http://mises.org/libprop.asp Middle-of-the-Road Policy Leads to Socialism http://mises.org/midroad.asp The Free Market and Its Enemies: Pseudo-Science, Socialism, and Inflation http://mises.org/resources/4034 Liberalism: In the Classical Tradition http://mises.org/liberal.asp Nation, State, and Economy http://mises.org/nsande.asp The Ultimate Foundation of Economic Science http://mises.org/books/ufofes/ Links to more online resources by Ludwig von Mises: http://mises.org/literature.aspx?action=author&Id=280 http://mises.org/daily/author/280 Related links: Biography of Ludwig von Mises (1881-1973) by Murray N. Rothbard http://mises.org/about/3248 Mises: The Last Knight of Liberalism by Jörg Guido Hülsmann http://mises.org/resources/3295 Audio book version: http://www.youtube.com/view_play_list?p=B20838592EA05A7B My Years with Ludwig von Mises by Margit von Mises http://mises.org/resources/3199 Audio book version: http://www.youtube.com/view_play_list?p=780388FF8EB8E952 The Life, Times, and Work of Ludwig von Mises: A Lecture Series by Jörg Guido Hülsmann http://www.youtube.com/view_play_list?p=C5B1932280759DCE Mises: An Annotated Bibliography by Bettina Bien Greaves http://mises.org/resources/4064 What is Austrian Economics? http://mises.org/etexts/austrian.asp Ludwig von Mises on Money and Inflation http://mises.org/resources/5230 The Philosophical Contributions of Ludwig von Mises http://mises.org/journals/rae/pdf/RAE7_1_4.pdf Ludwig von Mises and the Austrian School of Economics http://mises.org/journals/rae/pdf/RAE5_2_2.pdf The Cultural Thought of Ludwig von Mises http://mises.org/journals/jls/10_1/10_1_3.pdf The Austrian School of Economics: A History of Its Ideas, Ambassadors, and Institutions by Eugen-Maria Schulak and Herbert Unterköfler http://mises.org/resources/6136 Audio book version: http://www.youtube.com/playlist?p=PLF6C1466B1FDFB954
Views: 113 LibertyInOurTime
In this Crash Course we explain how you can measure the change in purchasing power. READ MORE: http://www.euronews.com/2014/01/14/consumer-spending euronews business brings you latest updates from the world of finance and economy, in-depth analysis, interviews, infographics and more Subscribe for daily dose of business news: http://bit.ly/1pcHCzj Made by euronews, the most watched news channel in Europe.
Views: 6003 euronews Business
Before 1974, U.S. dollars were backed by gold. This meant that the federal government could not print more money than it could redeem for gold. Learn more: http://bit.ly/1HVAtKP. While this constrained the federal government, it also provided citizens with a relatively stable purchasing power for goods and services. Today's paper currency has no intrinsic value. It is not based on the value of gold or anything else. Under a gold standard, inflation was really limited. With floating value, or fiat, currency, however, some countries have seen inflation reach extremely high levels—sometimes enough to lead to economic collapse. Gold standards have historically provided more stable currencies with lower inflation than fiat currency. Should the United States return to a gold standard? SUBSCRIBE: http://bit.ly/1HVAtKP FOLLOW US: - Website: https://www.learnliberty.org/ - Facebook: https://www.facebook.com/LearnLiberty - Twitter: https://twitter.com/LearnLiberty - Google +: http://bit.ly/1hi66Zz LEARN LIBERTY Your resource for exploring the ideas of a free society. We tackle big questions about what makes a society free or prosperous and how we can improve the world we live in. Watch more at http://bit.ly/1UleLbP
Views: 301020 Learn Liberty
✪✪✪✪✪ WORK FROM HOME! Looking for WORKERS for simple Internet data entry JOBS. $15-20 per hour. SIGN UP here - http://jobs.theaudiopedia.com ✪✪✪✪✪ ✪✪✪✪✪ The Audiopedia Android application, INSTALL NOW - https://play.google.com/store/apps/details?id=com.wTheAudiopedia_8069473 ✪✪✪✪✪ Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Theories that invoke purchasing power parity assume that in some circumstances (for example, as a long-run tendency) it would cost exactly the same number of, for example, US dollars to buy euros and then to use the proceeds to buy a market basket of goods as it would cost to use those dollars directly in purchasing the market basket of goods. The concept of purchasing power parity allows one to estimate what the exchange rate between two currencies would have to be in order for the exchange to be at par with the purchasing power of the two countries' currencies. Using that PPP rate for hypothetical currency conversions, a given amount of one currency thus has the same purchasing power whether used directly to purchase a market basket of goods or used to convert at the PPP rate to the other currency and then purchase the market basket using that currency. Observed deviations of the exchange rate from purchasing power parity are measured by deviations of the real exchange rate from its PPP value of 1. PPP exchange rates help to minimize misleading international comparisons that can arise with the use of market exchange rates. For example, suppose that two countries produce the same physical amounts of goods as each other in each of two different years. Since market exchange rates fluctuate substantially, when the GDP of one country measured in its own currency is converted to the other country's currency using market exchange rates, one country might be inferred to have higher real GDP than the other country in one year but lower in the other; both of these inferences would fail to reflect the reality of their relative levels of production. But if one country's GDP is converted into the other country's currency using PPP exchange rates instead of observed market exchange rates, the false inference will not occur. The idea originated with the School of Salamanca in the 16th century and was developed in its modern form by Gustav Cassel in 1918. The concept is based on the law of one price, where in the absence of transaction costs and official trade barriers, identical goods will have the same price in different markets when the prices are expressed in the same currency. Another interpretation is that the difference in the rate of change in prices at home and abroad—the difference in the inflation rates—is equal to the percentage depreciation or appreciation of the exchange rate. Deviations from parity imply differences in purchasing power of a "basket of goods" across countries, which means that for the purposes of many international comparisons, countries' GDPs or other national income statistics need to be "PPP-adjusted" and converted into common units. The best-known purchasing power adjustment is the Geary–Khamis dollar (the "international dollar"). The real exchange rate is then equal to the nominal exchange rate, adjusted for differences in price levels. If purchasing power parity held exactly, then the real exchange rate would always equal one. However, in practice the real exchange rates exhibit both short run and long run deviations from this value, for example due to reasons illuminated in the Balassa–Samuelson theorem. There can be marked differences between purchasing power adjusted incomes and those converted via market exchange rates. For example, the World Bank's World Development Indicators 2005 estimated that in 2003, one Geary-Khamis dollar was equivalent to about 1.8 Chinese yuan by purchasing power parity—considerably different from the nominal exchange rate. This discrepancy has large implications; for instance, when converted via the nominal exchange rates GDP per capita in India is about US$1,704 while on a PPP basis it is about US$3,608. At the other extreme, Denmark's nominal GDP per capita is around US$62,100, but its PPP figure is US$37,304. The purchasing power parity exchange rate serves two main functions. PPP exchange rates can be useful for making comparisons between countries because they stay fairly constant from day to day or week to week and only change modestly, if at all, from year to year. Second, over a period of years, exchange rates do tend to move in the general direction of the PPP exchange rate and there is some value to knowing in which direction the exchange rate is more likely to shift over the long run.
Views: 12259 The Audiopedia
What is the main cause of inflation?, What exactly is inflation?, What are 3 types of inflation?, Is inflation good or bad?, What is an inflation rate?, What is inflation? Is it Good or bad to the economy?, What is inflation? ,What are the pros and cons?, What is inflation spiral?, what is inflation in economics, what is inflation rate, inflation causes, inflation types, effects of inflation, inflation examples, inflation in india, inflation hurts the poor, effects of inflation on poverty, inflation causes poverty, relationship between poverty and inflation, inflation increases poverty, how does inflation affect the rich, effects of inflation on low income earners, who suffers from inflation, how is inflation measured,
Views: 126 We bounce back
Purchasing power parity is not only an interesting theory, but also an extremely useful tool to economists when comparing the purchasing power of different currencies in different countries. Purchasing power is a fancy way of trying to see the value of money in different countries. This is something that cannot be done by simply looking at the exchange rate and converting currencies; rather, currencies need to be converted to purchasing power parity dollars in order to compare differences in their values. Keep in touch! Facebook: https://www.facebook.com/InspirareGlobal Twitter: https://www.twitter.com/InspirareGlobal
Views: 1516 Inspirare
Please watch: "What is Inflation ? Various types of Inflation related terms or concepts" https://www.youtube.com/watch?v=UzL6kqQE5ow -~-~~-~~~-~~-~- Purchasing Power Parity (PPP) Concepts in Economics : Meaning and examples Purchase Power Parity (PPP) Concepts in Economics : Meaning and examples Economics for MPSC UPSC State Services SPSC exams There are many terms which we come across while we do our study. Many times we find it difficult to understand the exact meaning of these terms. In exam, questions will not come directly on these terms. But their better understanding will improve the quality of your answers. In this video series named "Concepts", we are focusing on such terms which will help you in further studies. For more videos visit - http://www.upscmantra.com/videos Synergy Study Point, as a UPSC Coaching Institute, strive to have an undivided focus on creating success stories as the Unique Selling Proposition. Located at the education hub Pune, Maharashtra, Synergy is undoubtedly a leading coaching institute for Civil Services (UPSC) and State Services (MPSC) Examination, in India. In past 11 years, with the focus on quality teaching, we have created unparalleled track record and 500+ success stories in Civil Services (UPSC) and State Services (MPSC) Examination. Teaching is a noble profession; we are committed to its values. We truly feel that the field of education needs to maintain its sanctity even with more caution during such changing times. We at ‘Synergy’ intend to ignite minds of thousands of capable and deserving young graduate population of the nation and guide their aspirations to succeed in competitive examinations to its conclusion.
Views: 21135 UPSCMantra : A Synergy Study Point initiative
This Video explains the Concept of Purchasing Power Parity Theory in foreign Exchange Management in Financial Management. This video will be helpful for CA, CS, CMA Students.
Views: 24654 CA Gopal Somani
Video shows what purchasing power means. The amount of goods and services that can be bought with a unit of currency or by consumers.. The ability of a large collective or company to negotiate more favourable prices and terms than a smaller group or company.. purchasing power synonyms: buying power. Purchasing power Meaning. How to pronounce, definition audio dictionary. How to say purchasing power. Powered by MaryTTS, Wiktionary
Views: 682 ADictionary
What is PINK MONEY? What does PINK MONEY mean? PINK MONEY meaning - PINK MONEY definition - PINK MONEY explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Pink money describes the purchasing power of the gay community, often especially with respect to political donations. With the rise of the gay rights movement, pink money has gone from being a fringe or marginalized market to a thriving industry in many parts of the Western world such as the United States and United Kingdom. Many businesses now specifically cater to gay customers, including nightclubs, shops, restaurants, and even taxicabs; the demand for these services stems from commonly perceived discrimination by traditional businesses. Worldwide in 1998, pink money was valued at L350 billion ($560 billion) across a variety of sectors—especially entertainment and consumer goods. Purchasing power in 2012 in the United States is expected to increase to $790 billion. In 2015 the purchasing power of the U.S. LGBT adults reached approximately $917 billion. The economic power of pink money has been seen as a positive force for the gay community, creating a kind of "financial self-identification" which helps gay and lesbian individuals feel like part of a community which values them. Indeed, upwards of 90% of gay people support businesses which target pink money, while actively shunning "anti-gay" companies. However, criticism has been leveled at businesses which target pink money from gay groups, arguing that this segregates the gay and lesbian community from society, and holds back gay rights. It's been considered more often than not a market exclusive for USA, UK and some places in Europe, but its extension covers a large amount of Latin America and part of Asia, making its actual earns larger by year and giving marketing options some impulse and variety.
Views: 903 The Audiopedia
In this lesson I explain what the "price" of money is in a market and how it is determined. I finally get around to explaining the time component within money, and I explain the Money Regression Theorem, the crucial logical deduction to explain where money gets its value from. Please remember to subscribe and add this channel feed to your RSS readers. New episodes will be posted weekly. Share the show's address! http://www.praxeology.tv Like me on Facebook: http://www.facebook.com/praxgirl Follow me on Twitter: http://www.twitter.com/praxgirl Donations: I currently accept three forms of donations and really appreciate your help funding the show! Changetip: http://praxgirl.tip.me Paypal: http://goo.gl/gqX3ez My Bitcoin donation address: 1FjQPQkWFeXvRqbHAShW2mF1avQcav9x56
Views: 5050 Praxgirl
See more videos at: http://talkboard.com.au/ In this video, we look at how high inflation erodes our purchasing power. This lecture will look at the consequences of this and why high inflation actually results in this erosion of purchasing power.
Views: 4122 talkboard.com.au
Big Macs: delicious (kinda), cheap (kinda), and educational (absolutely). In this episode, we look at how the economist magazine used burger prices to teach about purchasing power parity. If you enjoyed this video, please consider sharing on Reddit, Twitter, Facebook, etc. For a small channel like this, all exposure is extremely helpful. Twitter: @WendoverPro Email: [email protected] Attributions Big Mac footage provided by https://www.youtube.com/watch?v=xx447ehsS2g McDonald’s kitchen footage provided by epSos.de Select footage provided by VideoBlocks LLC Music provided Epidemic Sound Select maps provided by OpenStreetMap Select maps provided by Google Maps Select visuals provided by Wikipedia Commons Licenses available upon request Licensed under Creative Commons 3.0 or fair use guidelines
Views: 1265325 Wendover Productions
Inflation kills purchasing power of money explained in this video. Inflation eats away our purchasing power. If you are not taking care of inflation then it will ruin your financial health. cpi inflation rate market crash -~-~~-~~~-~~-~- Please watch: "Sebi Registered Investment Adviser- How he adds value with his advice?(Telugu)" https://www.youtube.com/watch?v=B_T4KV-Eqno -~-~~-~~~-~~-~-
Views: 1393 Paisa Health
In this short video clip I share a few thoughts on the "Gold Nominal Price vs FRN Purchasing Power Over 100+ Years". It's very important for more people to be able to share educational resources with family and friends this year. Helping others understand the role of sound money as a long term hedge against the depreciation of fiat currencies is priceless information that most people don't understand or take serious. To download a copy of the "Gold vs FRN" visual aid to share just click here: http://bit.ly/GOLDvsFRN Connect with Rethinking the Dollar on Steemit, Facebook & Twitter for more articles here: Steemit - https://steemit.com/@rtd Twitter - https://twitter.com/RethinkinDollar Facebook - https://www.facebook.com/rtdworldnews If you would like to support Rethinking the Dollar channel please consider donating the cost of 4 grams of silver ($2) or more here: http://www.rethinkingthedollar.com/donate/ *********** RTD UNIVERSITY *********** A new monetary paradigm starts by visiting the RTD University website. Choose from over 30+ hours of monetary and financial interviews from experts that will help you think beyond the pending dollar demise - http://bit.ly/RTD_University DISCLAIMER: The financial and political opinions expressed in this interview are those of the guest and not necessarily of "Rethinking the Dollar". Opinions expressed in this video should not be relied on for making investment decisions and do not constitute personalized investment advice. The information shared is for the sole purpose of education.
Views: 1021 Rethinking the Dollar
You likely have some money where your thought behind that money is "I want to keep my money safe." We all remember when a can of soda cost a quarter. Today it often costs a dollar or more! The purchasing power of our U.S. dollars has decreased significantly over our lives and our parents lives. We believe that safety of investments means "preserving purchasing power." To preserve the purchasing power of our portfolio, we prepare for a wide range of economic outcomes, both high inflation and low inflation, weak dollar and strong dollar. We believe in maximizing our diversity. Independent. Fee only. Fiduciary. We can be your financial advisor, your personal CFO. Better financial advice.
Views: 96 Supernova
The Buying Power of the U.S. Dollar Is Shrinking - https://www.themorganreport.com/join. Check out our weekly perspective on The Buying Power of the U.S. Dollar Is Shrinking, then please share on social media. Entitle: The Buying Power of the U.S. Dollar Is Shrinking Your incredibly shrinking dollar. The purchasing power of your dollar has dropped 94% since inception. In other words, prices are going up. That’s not good news for people who buy stuff. Remember, a lot of people think that inflation is what happens to prices. It’s not. Inflation is what happens to money. That’s where the word comes from. Inflate means to expand and prices don’t expand. Prices go up, prices go down. What expands? The money supply. It expands during inflation, it contracts during deflation. A result of an expansion of the money supply inflation is that prices tend to rise.
Views: 2564 The Morgan Report
Inflation is defined as a sustained increase in the general level of prices for goods and services in a county, and is measured as an annual percentage change. Under conditions of inflation, the prices of things rise over time. Put differently, as inflation rises, every dollar you own buys a smaller percentage of a good or service. When prices rise, and alternatively when the value of money falls you have inflation Causes of Inflation Demand-Pull Inflation – Inflation is caused by the overall increase in demand for goods and services, which bids up their prices. This theory can be summarized as "too much money chasing too few goods". In other words, if demand is growing faster than supply, prices will increase. This usually occurs in rapidly growing economies. This theory is often promoted by the Keynesian school of economics. Cost-Push Inflation – Inflation is caused when companies' costs of production go up. When this happens, they need to increase prices to maintain their profit margins. Increased costs can include things such as wages, taxes, or increased costs of natural resources or imports. Monetary Inflation – Inflation is caused by an oversupply of money in the economy. Just like any other commodity, the prices of things are determined by their supply and demand. If there is too much supply, the price of that thing goes down. If that thing is money, and too much supply of money makes its value go down, the result is that the prices of everything else priced in dollars must go up! This theory is often promoted by the “Monetarist” school of economics. Costs of Inflation Inflation affects different people in different ways, with some benefiting from its effects at the expense of some who lose out. It also depends on whether changes to the rate of inflation are anticipated or unanticipated. If the inflation rate corresponds to what the majority of people are expecting (anticipated inflation), then we can compensate and the impact isn't necessarily as severe. For example, banks can vary their interest rates and workers can negotiate contracts that include automatic wage hikes as prices go up. Here is a brief account of the typical winners and losers from inflation: Creditors (lenders) lose and debtors (borrowers) gain under inflation. For example, suppose a bank issues you a 30-year mortgage to buy a house at a fixed interest rate of 5% per year, costing $1,000 per month. As inflation rises, the “cost” of that $1,000 per month decreases, which benefits the homeowner, especially if the rate of inflation exceeds the interest rate on the loan. Inflation hurts savers since a dollar saved will be worth less in the future. Unless the money is saved in an account that pays an interest rate at or above the rate of inflation, the purchasing power of savings will erode. This phenomenon is sometimes called "cash-drag." Workers with fixed salaries or contracts that do not adjust with inflation will be hurt as the buying power of their incomes stay the same relative to rising prices. Similarly, people living off a fixed-income, such as those below the poverty line, retirees or annuitants, see a decline in their purchasing power and, consequently, their standard of living. Landlords benefit, if they have a fixed mortgage (or no mortgage) as they are able to raise the rent more each year. Uncertainty about what will happen next makes corporations and consumers less likely to spend. This hurts economic output in the long run. The entire economy must absorb repricing costs (menu costs) as price lists, labels, menus and more have to be updated. If the domestic inflation rate is greater than that of other countries, domestic products become less competitive Read more: Inflation: What Is Inflation? http://www.investopedia.com/university/inflation/inflation1.asp#ixzz4dYwkTmsu Follow us: Investopedia on Facebook
Views: 11829 Know Economics
http://www.glassjacobson.com Inflation Planning & Inflation Affects Wealth Management Firm Baltimore Maryland http://youtu.be/X0Pw3emCrR8 http://youtu.be/NbRJd-S6Dh4 Glass Jacobson CPA and Wealth Management Firm 10711 Red Run Blvd., Ste. 101 Owings Mills, MD 21117 (410) 356-1000 ext. 121 http://www.glassjacobson.com http://en.wikipedia.org/wiki/Inflation In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money -- a loss of real value in the internal medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time. Source - http://en.wikipedia.org/wiki/Wealth_management Wealth management as an investment-advisory discipline incorporates financial planning, investment portfolio management and a number of aggregated financial services. High-net-worth individuals (HNWIs), small-business owners and families who desire the assistance of a credentialed financial advisory specialist call upon wealth managers to coordinate retail banking, estate planning, legal resources, tax professionals and investment management. Wealth managers can have backgrounds as independent Certified Financial Planners, MBAs, Canadian Chartered Strategic Wealth Professionals, CFA Charterholders or any credentialed professional money managers who work to enhance the income, growth and tax-favored treatment of long-term investors. Wealth management is often referred to[by whom?] as a high-level form of private banking for the especially affluent. One must already have accumulated a significant amount of wealth for wealth management strategies to be effective. consumer price index what is consumer price index consumer price index cpi what is the consumer price index cpi consumer price index the consumer price index consumer index price price consumer index inflation rate rate of inflation inflation rates inflation index inflation us us inflation inflation definition definition of inflation hyper inflation define inflation effects of inflation causes of inflation inflation usa current inflation rate us inflation rate financial goals financial goals with cpi inflation inflation targeting inflation forecast food inflation cost push inflation annual inflation rate consumer price index rate calculate consumer price index us consumer price index consumer price index us consumer price index calculator grade inflation consumer price index inflation consumer price index and inflation inflation consumer price index consumer price index australia usa consumer price index types of inflation core inflation inflation linked bonds consumer price index definition definition of consumer price index definition consumer price index consumer price index statistics calculating consumer price index united states consumer price index consumer price index canada canada consumer price index consumer price index rates uk consumer price index consumer price index uk consumer price index formula consumer price index equation formula for consumer price index consumer price index calculation current consumer price index what is the current consumer price index inflation articles inflation rate calculator inflation protected bonds consumer price index by year consumer price index data historical consumer price index consumer price index historical house price inflation inflation rate today consumer price index wikipedia bls consumer price index international consumer price index consumer price index numbers your financial goals the consumer price index measures core consumer price index uk inflation forecast example of financial goals financial goals examples examples of financial goals sample financial goals national inflation rate financial goals of a company financial planning goals consumer price index food consumer price index for food monthly consumer price index what is the current consumer price index rate long term financial goals achieve financial goals short term financial goals financial short term goals goals of a financial manager goals of financial manager http://www.glassjacobson.com http://youtu.be/X0Pw3emCrR8 http://youtu.be/NbRJd-S6Dh4 Sources: a. http://www.bls.gov/cpi/ b. http://www.bls.gov/data/inflation_calculator.htm c. http://www.forbes.com/sites/larahoffmans/2013/02/13/inflation-fisher-investments/ d. http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG
Views: 5170 WealthManagementCPA
Buy .10 to .20 Cents on the dollar. Increase the purchasing power of your money. dollars,pounds, euros,yen what ever your currency, you can turn you currency into a power house, and keep out/reduce debt and reduce your tax burden. It your money spending it wisely is your way to living a good life.
Views: 979 great769
For all enquiries on our services [email protected]
Views: 80 Golden Seeds FX
Because the price of goods and services differ between countries, it can be difficult to compare how much your money will buy in different places. This is where Purchasing Power Parities (PPP) come in, letting us compare the real value of money between different countries. More at: http://icp.worldbank.org
Views: 6007 World Bank
PLEASE WATCH FIRST MY VIDEO ABOUT NOMINAL AND REAL EXCHANGE RATES. The Purchasing Power Parity (PPP) comes in two flavours: absolute and relative. The absolute PPP is at the core of The Economist's Big Mac index. The relative PPP, makes the connection between inflation and nominal exchange rate. Macroeconomics. Summer Semester 2016. Recorded at Bucharest University of Economic Studies. Inregistrat la Academia de Studii Economice din Bucuresti
Views: 10777 Basarab Gogoneata
2thepoint Youtube Channel Covers UPSC /Civils/IAS /IPS /IFS Preparation Videos, UPSC Material, IAS Material, Banking Material, Indian Economy, International Relations, Indian Polity, Geography, Indian Art and Culture UPSC Videos, Civil Service Preparation Strategy. Also Visit: Website: https://www.2thepoint.in/ Facebook: https://www.facebook.com/2thepoint.in/
Views: 1484 2thepoint
In this video, I explain how is value of a currency determined and why value of indian rupee is falling against US dollar. I explain the concept of demand-supply, purchasing power and purchasing power parity. Watch this video to understand how value of a currency is determined and how it fluctuates and reasons behind the fall of indian rupee. #indianrupeevsdollar #currency #foreignexchange Please like, share, support and subscribe at https://www.youtube.com/c/ShariqueSamsudheen :) Instagram - sharique.samsudheen WhatsApp - +91-7907124314 Like and follow on Facebook at www.facebook.com/sharqsamsu
Views: 261605 Sharique Samsudheen
Webinar presentation coming to a computer screen near you.. Keep a lookout. Hosted by Joe Mina.
Views: 185 Joseph Mina
The roots of the system The dual currency principal, the fractional reserve principle and currency dematerialisation
Views: 80 SommetProductions
Professor L. Randall Wray discussing how the purchasing power of a currency is determined. Since the government tax creates a demand for that currency, the amount of currency demanded will be *at least* equal to the total amount of the tax, but probably more than that, meaning the government will have to run deficits. But this doesn't tell us what the currency will exchange for: will $1 buy 1 apple or 1,000 apples? Modern Money Theory suggests that this is determined by what prices the government pays when it purchases goods and labor. If you need $100 to pay the tax, you are going to work for the government (or for somebody else who has worked for the government) until you have $100. So the government can dictate what you must do to receive $100: will it take 1 hour of work, or 200 hours of work? Arbitrage around this in the private sector will determine the purchasing power of $1. A government could dictate a price it will pay. It could dictate every price it would pay, and then all activity in the private sector would change to arbitrage around these. More commonly, governments set a single price, and allow market forces to determine the rest. In a gold standard, the government fixes the price of gold, and then relative market pricing determines the rest of prices in the economy. A problem can happen when the government doesn't fix any price, but allows markets to determine all prices. This is because a small amount of inflation will lead to the government paying higher prices, which will lead to more inflation, which will spiral. In our current setup, we use unemployment to deal with this: when prices start to rise, demand falls because the poor can't buy, which brings prices back down. MMT advocates instead the government should fix the price of unskilled labor, by offering a Job Guarantee, to anybody who is ready, willing, and able to work at a fixed nominal wage. This would reverberate through the markets and help anchor other prices against inflation or deflation. See the whole video here: https://www.youtube.com/watch?v=SFf95BVx9Qw&index=7&list=PLYvSXI9SKGf2lIno6TI0r_PbLX_cpAwuu Like Deficit Owls on Facebook here: https://www.facebook.com/DeficitOwls/
Views: 1056 Deficit Owls
This video posted with permission FINANCIAL ARGUMENT: ► https://financialargument.net ► https://twitter.com/financialargmnt ► https://www.facebook.com/financialargument/ ► https://plus.google.com/114280813876408875494 Report Date: September 2018 Peter Schiff talks about interest rate & inflation. ► Tariffs Aren’t Helping Auto Industry So the tariffs aren’t working. The tax cuts aren’t working. The auto companies are going down. Remember, stocks are forward looking, so the stocks are basically saying that there is a big slowdown coming in the automobile sector. Profits are not going to be there. Tax cuts are not going to be very valuable if there aren’t any profits. ► Industry Slowdown in Home Building Also look at what is happening with the home building companies. All these stocks getting killed – some down over 5% today alone. They are pretty much all in bear market territory. So now the homebuilders are also saying, “The industry is going to slow down.” ►Autos and Housing Are Not Booming Those are 2 very important sectors of the economy: housing and autos. If they are on the verge of recession. If the stocks in those sectors are forecasting recession, how is it possible that the U.S. economy is experiencing a “historic boom”? “It’s booming like it’s never boomed before!” Yet autos and housing are not only not part of the boom, they’re actually having a bust. Riddle me that, Batman. How is it that the economy is so strong when these two key sectors are so weak? ► Interest Rates and Inflation Why are these sectors so weak? Well one reason, of course, is rising interest rates. Everybody believes that interest rates are going to keep rising which means more nails in the coffin of the auto sector and the housing sector. And of course, both housing and autos are being hit by inflation because of raw material costs. It’s more expensive to build cars – it’s even more expensive to build homes. ► Tariffs Attacking Our Vendors and Bankers The tariffs are getting higher. Trump was out today saying he is going to put another $240 billion of tariffs on Chinese products in addition to the $200 billion we already have queued up and yesterday he was talking about going after Japan and we’re the ones who have the most to lose by picking all these fights with all the countries that are supplying us the goods we need and loaning us all the money we need. We’re basically attacking our vendors and our bankers and somehow think this is a good strategy. ► Big Leading Indicators Say Something is Wrong So you can’t have a recession in autos and housing simultaneously and somehow the rest of the U.S. economy is impervious. These are obviously big leading indicators that something is wrong. Are You Prepared For The Coming Economic Collapse And The Next Great Depression ? It is to say that economic developments, financial crisis, stock market collapse speculations, changes in gold prices could lose all of your investments or it can make you money. Financial Argument shares many experts ' assessments and predictions about financial developments with you every day with current videos. All you have to do is follow the “Financial Argument” channel and subscribe it. In order to support us, please do not forget to like our videos and comment it with on your own views.Finally, you can visit our website address; https://financialargument.net and social media accounts for more financial news. SUBSCRIBE FINANCIAL ARGUMENT for Latest on Financial News, Gold News, Silver News, Stock Market News, Bitcoin News, Political News, Oil News, Economic News, Economic Collapse News ... DISCLAIMER: The financial and political opinions expressed in this video are not necessarily of "Financial Argument" or its staff. Opinions expressed in this video do not constitute personalized investment advice and should not be relied on for making investment decisions.
Views: 3187 financial argument
Follow our journey to financial freedom through the world of financial risk-taking and investments! Our store Contrarian Apparel: https://teechip.com/stores/contrarianapparel ____________________________________________________________________________________________________________________________________ Platforms that reward you with free crypto-currency or you can turn into an online earning opportunity: ADZbuzz - A content discovery social media platform: https://adzbuzz.com/go?r=mb001589 Buzzex - A cryptocurrency exchange: https://buzzex.io/en/join/d4x9Wb3XLdWHTRy7piTBFJ Clearpoll - A poll voting app/platform: http://adz4life.com/clearpoll-poll-tokens/ __________________________________________________________________________________________________________________________________ Protect your crypto assets with a Ledger Nano Hardware/Cold Wallet: http://adz4life.com/ledger-nano-hardware-wallet/ ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Buy Bitcoin easily on Coinbase and get an extra free $10 worth: https://www.coinbase.com/join/52c31813b558c46df700008b __________________________________________________________________________________________________________________________________ Connect with me on social media: Follow me on Facebook: https://www.facebook.com/TheAudaciousInvestor/ Follow me on Twitter: https://twitter.com/mb00158 Follow me on Instagram: https://www.instagram.com/the_audacious_investor/ __________________________________________________________________________________________________________________________________ More Information: Visit our Blog: http://adz4life.com/ BUZZEX: Buzzex Telegram Community Group: https://t.me/Buzzexio_Chat Buzzex News Announcements on Telegram: https://t.me/Buzzexio Buzzex Blog: https://blog.buzzex.io _________________________________________________________________ ADZBUZZ: Join ADZbuzz: https://adzbuzz.com/go?r=mb001589 Claim your daily free cryptocurrency airdrop tokens on ADZbuzz: https://www.youtube.com/watch?v=VGZsNJhhW6E&t=1245s ADZbuzz Social Media Links: ADZbuzz Telegram Community Group: https://t.me/TheADZcoinProject ADZbuzz News Announcements on Telegram: https://t.me/ADZNews DISCLAIMER: Any opinions expressed is just my own personal opinion of what I am doing. I am not a financial adviser. I advise everyone not to take anything I recommend at face value but to always do your own research before investing in anything.
Views: 33 The Audacious Investor
The nature of money Money is usually defined by its functions, but the key lies in understanding the true nature of money. What is it?
Views: 67 SommetProductions