A standard formula for measuring purchasing power compares the value of money across different time periods: Purchasing Power = (Cost of Basket in Current Year / Cost of Basket in Base Year ...

The Office of the U.S. Trade Representative later confirmed the formula by publishing what ... U.S. goods are much more expensive, and the purchasing power is lower for countries targeted with ...

Purchasing power is the value of a currency in real terms—based on the goods and services each unit can be exchanged for. Remember when you could buy two Mcdonald's Big Macs with a $5 bill in 2000?