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# Real versus nominal value (economics)

In economics, a real value of a good or other entity has been adjusted for inflation, enabling comparison of quantities as if prices had not changed. [1]

## Aggregation problem

An aggregate in economics is a summary measure describing a market or economy.

## Amartya Sen

Amartya Kumar Sen, CH, FBA (born 3 November 1933) is an Indian economist and philosopher, who since 1972 has taught and worked in India, the United Kingdom, and the United States.

## Bureau of Labor Statistics

The Bureau of Labor Statistics (BLS) is a unit of the United States Department of Labor.

## Classical dichotomy

In macroeconomics, the classical dichotomy is the idea, attributed to classical and pre-Keynesian economics, that real and nominal variables can be analyzed separately.

Constant purchasing power accounting (CPPA) is an accounting model approved by the International Accounting Standards Board (IASB) as an alternative to traditional historical cost accounting under hyper-inflationary environments.

## Consumer price index

A consumer price index (CPI) measures changes in the price level of of and purchased by households.

## Cost-of-living index

A cost-of-living index is a theoretical price index that measures relative cost of living over time or regions.

## Cross-sectional data

Cross-sectional data, or a cross section of a study population, in statistics and econometrics is a type of data collected by observing many subjects (such as individuals, firms, countries, or regions) at the same point of time, or without regard to differences in time.

## Deflation

In economics, deflation is a decrease in the general price level of goods and services.

## Economics

Economics is the social science that studies the production, distribution, and consumption of goods and services.

## Federal Reserve Bank of Dallas

The Federal Reserve Bank of Dallas covers the Eleventh Federal Reserve District, which includes Texas, northern Louisiana and southern New Mexico, a district sometimes referred to as the Oil Patch.

## Financial asset

A financial asset is a non-physical asset whose value is derived from a contractual claim, such as bank deposits, bonds, and stocks.

## Financial repression

Financial repression comprises "policies that result in savers earning returns below the rate of inflation" in order to allow banks to "provide cheap loans to companies and governments, reducing the burden of repayments".

## Fisher equation

The Fisher equation in financial mathematics and economics estimates the relationship between nominal and real interest rates under inflation.

## Goods

In economics, goods are materials that satisfy human wants and provide utility, for example, to a consumer making a purchase of a satisfying product.

## Gross domestic product

Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time.

## Index (economics)

In economics and finance, an index is a statistical measure of changes in a representative group of individual data points.

## Inflation

In economics, inflation is a sustained increase in price level of goods and services in an economy over a period of time.

## Inflation accounting

Inflation accounting comprises a range of accounting models designed to correct problems arising from historical cost accounting in the presence of high inflation and hyperinflation.

## Interest

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.

## Money illusion

In economics, money illusion, or price illusion, is the tendency of people to think of currency in nominal, rather than real, terms.

## National accounts

National accounts or national account systems (NAS) are the implementation of complete and consistent accounting techniques for measuring the economic activity of a nation.

## National Income and Product Accounts

The national income and product accounts (NIPA) are part of the national accounts of the United States.

## Neutrality of money

Neutrality of money is the idea that a change in the stock of money affects only nominal variables in the economy such as prices, wages, and exchange rates, with no effect on real variables, like employment, real GDP, and real consumption.

## Nominal interest rate

In finance and economics, the nominal interest rate or nominal rate of interest is either of two distinct things.

## Numéraire

The numéraire (or numeraire) is a basic standard by which value is computed.

## Price index

A price index (plural: “price indices” or “price indexes”) is a normalized average (typically a weighted average) of price relatives for a given class of goods or services in a given region, during a given interval of time.

Purchasing power (sometimes retroactively called adjusted for inflation) is the number and quality or value of goods and services that can be purchased with a unit of currency.

## Real interest rate

The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation.

## Real prices and ideal prices

The distinction between real prices and ideal prices is a distinction between actual prices paid for products, services, assets and labour (the money that actually changes hands), and computed prices which are not actually charged or paid in market trade, although they may facilitate trade.

## S&P Global

S&P Global Inc. (prior to April 2016 McGraw Hill Financial, Inc., and prior to 2013 McGraw Hill Companies) is an American publicly traded corporation headquartered in New York City.

## Taylor series

In mathematics, a Taylor series is a representation of a function as an infinite sum of terms that are calculated from the values of the function's derivatives at a single point.

## The New Palgrave Dictionary of Economics

The New Palgrave Dictionary of Economics (2008), 2nd ed., is an eight-volume reference work on economics, edited by Steven N. Durlauf and Lawrence E. Blume and published by Palgrave Macmillan.

## The Wealth of Nations

An Inquiry into the Nature and Causes of the Wealth of Nations, generally referred to by its shortened title The Wealth of Nations, is the magnum opus of the Scottish economist and moral philosopher Adam Smith.

## Time series

A time series is a series of data points indexed (or listed or graphed) in time order.

## References

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