Real terms
“In real terms' means the change in a financial number after correcting for the effect of inflation.
Real terms
Same as real. A "wage expressed in real terms" is just the real wage.
Real trade
A shorthand term for most of the theory of international trade, which consists largely of real models. Contrasts with international finance.
Often we consider this in real terms, by dividing the new money by the price level. Select ten portfolio A unit investment trust that buys and holds for one year the ten stocks in the Dow Jones Industrial Average with the highest dividend yields.
Real cash flow A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash flow is given. Real exchange rates Exchange rates that have been adjusted for the inflation differential between two countries.
In real terms, the average annual wellhead price of gas peaked in 1984, when price controls were still in effect.
For example, the pound sterling was considered structurally weak and liable to depreciate (in real terms) for much of the post World War II period; later[when?] it was considered to have re-established fiscal and monetary soundness and to be strong.
3% in real terms) to reach $4.1 trillion. The macro-economic environment was characterised by slower economic growth in 2007 and rising inflation. Profitability improved in life insurance and fell slightly in the non-life sector during the year.
So the next step is to define that audience in real terms. For instance, if your product is aromatic candles, ...
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash
flow is given.
Round-trip transactions costs
Costs of completing a transaction, including commissions, market impact
costs, and taxes.
Example: Real estate is considered a hedge against inflation because it tends to be long-lasting and holds its value in real terms. As the value of the dollar drops, real estate tends to command more dollars.
But even when prices rise due to money being created faster than goods, prices still fall in real terms, because wages rise faster than prices. In either scenario, if productivity and output are increasing, goods get cheaper in real terms.
value of investment in real terms a value of an investment that is maintained at the same level, for example, by making it index-linked
Recommended Further Reading (Term count) ...
INDEX-LINKED BOND - provides a secure investment in real terms, as the coupon payments and the redempti...
INDEX-TRACKING UNIT TRUST - The only type of unit trust that makes sense to us. While most unit trusts ...
This has a double negative impact on consumers and companies, because their earnings decrease both in nominal ( i.e. they earn less in a recession ) and in real terms ( the money earned is devalued by inflation and can buy less).
Index linked bond - A secure investment measured in real terms, as the bond payments and any redemption payments or proceeds are linked to movements in the CPI (Consumer Prices Index).
Capital gains refers to an increase in the value of a persons assets. Capital gains is usually shown in real terms, i.e. the effects of inflation are taken into consideration.
Examples include:
Rising prices of shares, stocks and bonds ...
The effect of inflation on our lives can be profound, if not always immediately visible. Our savings in a bank or building society may be eroded in real terms - this happens when the interest rate on offer from the bank or building society is less ...
Seigniorage
The amount of goods and services that the government obtains by printing new money in a given period. Often we consider this in real terms, by dividing the new money by the price level.
It is conventionally measured as the rate of increase in Gross Domestic Product, or GDP. Growth is usually calculated in real terms (i.e., netting out the effect of inflation on the price of the goods and services produced).
The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects. This method expresses the nominal rate of return in real terms, ...
an estimate of differentials in productivity growth between Chile and its trading partners as a new factor in the determination of the official reference exchange rate. This new factor will allow for a gradual yearly appreciation of 2% in real terms.
It is used not only as an indicator of the price level and inflation, but also to convert nominal economic indicators to real terms and to adjust wage and income payments (such as Social Security) for inflation.
 See also: Expense, Prepayments, Prepayment, Funding, Principal payments
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