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

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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use