Purchasing Power Risk

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August 25, 2024 4 min read Definitions

Purchasing Power Risk: Understanding the Erosion of Currency Value

Economics Finance Purchasing Power Risk Inflation Currency Value U.S. Treasury Bonds Default Risk

Purchasing Power Risk is the risk that inflation will erode the value of the currency in which a financial deal has been made. Explore its significance in long-term investments such as U.S. Treasury bonds, and understand how it differs from default risk.

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