CPM Forum
General => General Forum Comments => Topic started by: Ottawa on May 07, 2011, 05:11:52 pm
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While reading an article in a recent IBNS (International Bank Note Society) Journal I came across a very interesting website for calculating the purchasing power of money in bygone years relative to subsequent years. Algorithms exist for US Dollars and Sterling Pounds amongst others:
http://eh.net
http://www.measuringworth.com/ppowerus
I performed a few sample computations using the latter website and the results are quite elucidating as far as the collecting of high-denomination banknotes are concerned, for example:
A $500 banknote in 1911 had the same purchasing power as $11,600 in 2009.
A $500 banknote in 1925 had the same purchasing power as $6,120 in 2009.
A $25 banknote in 1935 had the same purchasing power as $391 in 2009.
Although the website generator is for US Dollars one can surmise that the purchasing power of a Bank of Canada $25 1935 note at the time of issue was roughly equivalent to $400 today. This might help to explain the scarcity of earlier high-denomination notes in general.
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I have a similar tool on an Excel sheet, based on the inflation rate in Canada since 1914.
500$CAN in 1925 = 6269,80$CAN in 2008.
25$CAN in 1935 = 390,79$CAN in 2008.
Which is in both cases similar to your results. :)