The Basket Residue Theory (BRT)

This paper introduces the Basket Residue Theory (BRT) as a mathematical framework for assessing the real purchasing power of money, prosperity levels, poverty dynamics, and indirect wealth transfers in an economy. The model builds on variations in the prices of a representative basket of goods and services, offering a quantitative measure of real value erosion or enhancement over time. BRT extends beyond conventional inflation indices by integrating fiscal and monetary interactions into the valuation residue concept.

Basket Residue Theory, Purchasing Power, Inflation, Prosperity Index, Poverty Dynamic

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