Inflation is a measure of a currencies devaluation over time. It is determined by the consumer price index (CPI) which itself is a record of the cost of a standardised basket of goods over time. CPI figures are recorded monthly by governments. Here I use the CPI of the USA.
Economists call a price which has been adjusted for inflation the real price . To adjust...
Purchasing power ( PP -25.00% ) is a measure of strength of a currency. It represents a quantity of goods & services that can be bought by a unit of currency. Since 1914 the purchasing power of the US dollar -0.89% is down 96 %.
The calculation is simple. We take the consumer price index ( CPI 0.24% ) for the USA and divide every value by the value for our base...