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econ

Given the variety of existing interpretations, the issue of purchasing power — especially its long-term behavior — often lacks a clear and objective mathematical formulation, which is addressed by proposing a model that represents its evolution under such a scenario. The purchasing power of fiat currency is defined here as the quotient between base and quantity, under the assumption of a constant base and an indefinitely expanding quantity over time.

lim Q → ∞ (B / Q) = 0, where B = ε ≪ 1

Does this asymptotic behavior make sense, given that B is a fixed, small value and Q grows without bound?