Purchasing power refers to the ability of money to buy goods and services. It is an economic concept that measures the buying capacity of a currency or unit of account over time, taking into consideration factors such as inflation, deflation, and changes in consumer behavior. In other words, it represents how much you can get for your money at any given time. A higher purchasing power means that your money goes further in terms of what you can buy with it, while a lower purchasing power indicates that the value of your currency has decreased over time, requiring more units to purchase the same goods or services.