indexation
Sign in to saveIndexation is a technique to adjust income payments by means of a price index, in order to maintain the purchasing power of the public after inflation, while deindexation is the unwinding of indexation. It is often used to make sure regular payments, such as pension payments keep pace with inflation, so that they have the same value in real terms over time.
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- Wages
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Indexation is a technique to adjust income payments by means of a price index, in order to maintain the purchasing power of the public after inflation, while deindexation is the unwinding of indexation. It is often used to make sure regular payments, such as pension payments keep pace with inflation, so that they have the same value in real terms over time.
==Overview== From a macroeconomics standpoint there are four main categories of indexation: wage indexation, financial instruments rate indexation, tax rate indexation, and exchange rate indexation.
Excerpted from Wikipedia’s “indexation” article, available under the CC BY-SA 4.0 licence.