Geldwertes
Geldwertes is a term used in German economics to denote the monetary value of money, i.e., the purchasing power of a currency at a given time. In English-language economics, the concept is usually described as the real value of money or its purchasing power. Geldwertes is often discussed in relation to the nominal face value of money versus what that money can actually buy.
Its level is determined by the interaction of money supply and demand, inflation (the general rise in
Economists measure Geldwertes using price indices such as the consumer price index (CPI) or the GDP deflator
Historical episodes show the importance of preserving Geldwertes. The Weimar Republic experienced a dramatic collapse of
See also: money, inflation, monetary policy, purchasing power, real vs nominal value, price index.