The problem with fiat currencies is that they are prone to loss of purchasing power. The currency loses its purchasing power when prices increase (i.e. there is inflation), as consumers are able to ...

Purchasing power refers to how much you can buy with a unit of currency, such as a dollar. If your purchasing power declines, your money has become less valuable. Inflation impacts purchasing power, ...

The loss of purchasing power here was 54.56% if we measure inflation using the Consumer Price Index for All Urban Consumers. Personally, I strongly suspect that this measure of inflation understates ...