indexation

indexation
/in'dek say"sheuhn/, n. Econ.
the automatic adjustment of wages, taxes, pension benefits, interest rates, etc., according to changes in the cost of living or another economic indicator, esp. to compensate for inflation.
[INDEX + -ATION]

* * *

Comparison of price levels over time.

In fiscal policy, indexation is used as a means of offsetting the effect of inflation or deflation on social security payments and taxes by measuring the real value of money from a fixed point of reference, usually a price index. Without indexing, recipients of social security benefits, for example, would suffer during times of inflation if their benefits remained at a fixed rate. Indexation is used in some countries to offset "bracket creep," which occurs in any progressive tax system when inflation pushes taxpayers into higher tax brackets. Indexation may also refer to the linking of wage rates and financial instruments to a price index.

* * *

      in fiscal policy, a means of offsetting the effect of inflation or deflation on social security payments and taxes by measuring the “real value” of money from a fixed point of reference, usually a price index. Without indexing, recipients of social security benefits, for example, would suffer during times of inflation if their benefits remained at a fixed rate. Indexation in this case would also apply to taxes levied to support the program. Indexation is used in some countries to offset “bracket creep,” which occurs in any progressive tax (q.v.) system when inflation pushes taxpayers into higher income tax brackets. Indexation may also refer to the linking of wage rates and financial instruments to a price index.

* * *


Universalium. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • INDEXATION — L’indexation consiste à identifier dans un document certains éléments significatifs qui serviront de clé pour retrouver ce document au sein d’une collection. Ces éléments comprennent le nom de l’auteur, le titre de l’ouvrage, le nom de l’éditeur …   Encyclopédie Universelle

  • Indexation — is a technique to adjust income payments by means of a price index. This to keep up the purchasing power of the public after inflation.Applying a cost of living escalation COLA clause to a stream of periodic payments protects the real value of… …   Wikipedia

  • indexation — n. a system of economic regulation in which wages and interest are tied to the cost of living index in order to compenaste for the effects of inflation. [WordNet 1.5] …   The Collaborative International Dictionary of English

  • indexation — (n.) 1960, noun of action from INDEX (Cf. index) (v.) …   Etymology dictionary

  • Indexation —   Indexation is an attempt by lawmakers or parties to a contract to cope with the effects of inflation. Amounts fixed in law or contracts are indexed when these amounts change as a given measure of price changes …   International financial encyclopaedia

  • indexation — [in΄dek sā′shən] n. the practice of indexing wages, interest rates, etc …   English World dictionary

  • Indexation — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom. Sur les autres projets Wikimedia : « Indexation », sur le Wiktionnaire (dictionnaire universel) Le mot « indexation » peut faire… …   Wikipédia en Français

  • Indexation — Linking adjustments made to the value of a good, service or other metric, to a predetermined index. Indexation requires the identification of a price index and whether a linking the value to the price index, will accomplish the organization s… …   Investment dictionary

  • indexation — See passive fund management. Dresdner Kleinwort Wasserstein financial glossary * * * index index 2 verb [transitive] 1. ECONOMICS FINANCE to arrange for the level of payments such as wages or …   Financial and business terms

  • indexation — 1) The policy of connecting such economic variables as wages, taxes, social security payments, annuities, or pensions to rises in the general price level (see inflation). This policy is often advocated by economists in the belief that it… …   Accounting dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”