Investor Glossary-current dollarsInvestor Glossary-current dollarsInvestor Glossary-current dollarsInvestor Glossary-current dollarsInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Current Dollars

WordPress
The HTML to link to this page
 

Current dollars (also known as "nominal dollars") are dollars in the year they were actually received or paid, unadjusted for price changes. For many years the US economy has experienced inflation, so amounts expressed in current dollars misrepresent their actual purchasing power. For example, someone earning $20,000 in 1955 in current dollars - the dollars actually paid that year - would appear to be lower middle-class at best. But despite the low amount in current dollars, he or she would have been in the upper middle-class. To make valid comparisons of economic activity and prices over time, instead of current dollars economists use constant dollars, which adjusts current dollars for the impact of inflation. Since the basket of goods and services used to measure inflation changes over time - there were no personal computers in 1955 - constant dollars have measurement problems like current dollars. But overall they give a much more accurate picture of economic activity than current dollars.



Rate this current dollars definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: required rate of return, ex-dividend, Zero Cost Collar, debt service coverage, quality assurance, class C shares, LIBOR, command economy, stock market close, per diem, VIX, reverse mortgage, 401a, current ratio, implied volatility, labor relations, stock split, deferred tax, APR, cancelled check, 1035 exchange, phantom income, deferred revenue, liquidity ratio, minority interest, in escrow, real GDP, irrevocable trust, average price per share, covered put, inflation, open position, 1031 exchange, Key Rate Duration, margin rate, EBITDA, risk management, retained earnings, 144a, wholly-owned subsidiary, FTSE, dividends payable, limit order, ex-dividend date, balance sheet, FICO score, annual return, option premium, diluted share


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use