Calculating Purchasing Power

Just want to ask something I thought of. Mod 21 discusses how loans should be returned based on purchasing power rather than simply returning the amount of money owed, but that calculating purchasing power is difficult and complex. Isn't it far easier to lend someone in gold, say gold coins or bars, rather than trying to calculate the purchasing power?

Not exactly. Purchasing power can be calculated using the Purchasing Power Parity theory. There is a step by step process using the CPI to calculate the same. I would not agree when you say it is complicated etc. We already have the systems in place for the same.

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