Purchasing power absorption

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The term purchasing power absorption is used in both an economic and a business context. In the economic sense, the purchasing power absorption aims at the non-realization of a demand . It is useful to reduce the free money supply and thus reduce the purchasing power that affects demand . The reduction of the causal need on which the demand is based cannot be realized in the short term. To achieve this, long-term effective measures such as the setting of steering incentives would be required. In the context of open market transactionsit is possible for the central banks to reduce existing purchasing power on the capital market . The skimming is thus an important instrument of the regulatory policy of both monetarism and Keynesianism .

From a business point of view, the aim of skimming off purchasing power is to combine as high a share as possible of the existing purchasing power of the sub-market in which the company operates on the offer of its own company . In the optimal case, this leads to an increase in market share .