He said: "We balance the budget. The way we run the club I have money available to buy.
"Three or four years ago we went into a different policy that we have to be shrewd.
"I can make signings at very high prices but you have to have cohesion in the way you buy.
"Manchester United are in the £20-£30million bracket, Chelsea are in the unlimited bracket. We have to be in our own bracket - reasonable but shrewd."
The Emirates faithful are anxious at the lack of a big-name signings and want Wenger to splash the cash. But he is prepared to go against their wishes.
Wenger insisted: "Big signings reassure. But good performances are much better. We opted for stability with young players who have the spirit of our club.
"We always want to buy the right player at the right price but when you want to move a club forward like I did here in the last 10 years, you also need investment - not only for players.
"The quality of a manager is also to develop young players, to spot them when they aren't necessarily stars."
He added: "If I had the choice to buy a player for £30million and win the title I would do it."
So why has he not done it?
Wenger said: "For £30million you speak about a striker. I have Van Persie, Adebayor, I have Bendtner who I was patiently building up to be at the level I want him to be. So why should I buy?
"Now I have Carlos Vela, Eduardo Da Silva. We have the quality. That's why."