# Real and nominal value

> Mediated Wiki article. Canonical URL: https://mediated.wiki/source/Real_and_nominal_value
> Markdown URL: https://mediated.wiki/source/Real_and_nominal_value.md
> Source: https://en.wikipedia.org/wiki/Real_and_nominal_value
> Source revision: 1350400595
> License: Creative Commons Attribution-ShareAlike 4.0 International (https://creativecommons.org/licenses/by-sa/4.0/)

Value in economics and accounting

Not to be confused with [Real versus nominal value (metrology)](/source/Real_versus_nominal_value_(metrology)).

Part of a series on Economics Outline Index Glossary Economists Principles of Economics Tools and methodology Economic theory Mathematical modeling Game theory Rational choice Cognitive science (Behavioral) Economic equilibrium Empirical methods Experimental Econometrics Time series Spatial Causal inference Quasi-experiments Prescriptive and policy Welfare analysis Social choice theory Rational choice theory Cost–benefit analysis Branches and subfields Applied Econometrics Econophysics International Heterodox Micro Macro Mainstream Mathematical Mech. design Methodology Political Industrial org. Market design Applications Agriculture Business Cultural Demographic Development Ecological Education Engineering Environmental Evolutionary Financial Geographic Happiness Health History Information Infrastructure Institutions Labour Law Management Non-monetary Organization Participation Personnel Planning Policy Public sector Public choice Social choice Regional Regulatory Resources Rural Service Transport Urban Welfare Economics portal v t e

In [economics](/source/Economics), **nominal** **value** refers to value measured in terms of absolute [money](/source/Money) amounts, whereas **real value** is considered and measured against the actual [goods or services](/source/Goods_or_services) for which it can be exchanged at a given time. Real value takes into account inflation and the [value](/source/Value_(economics)) of an asset in relation to its [purchasing power](/source/Purchasing_power). In macroeconomics, the [real gross domestic product](/source/Real_gross_domestic_product) compensates for inflation so economists can exclude inflation from growth figures, and see how much an economy actually grows. Nominal GDP would include inflation, and thus be higher.

## Commodity bundles, price indices and inflation

A **commodity bundle** is a sample of [goods](/source/Good_(economics)), which is used to represent the sum total of goods across the economy to which the goods belong, for the purpose of comparison across different times (or locations). At a single point of time, a commodity bundle consists of a list of goods, and each good in the list has a market price and a quantity. The market value of the good is the market price times the quantity at that point of time. The **nominal** value of the commodity bundle at a point of time is the total market value of the commodity bundle, depending on the market price, and the quantity, of each good in the commodity bundle which are current at the time.

A [price index](/source/Price_index) is the relative price of a commodity bundle. A price index can be measured over time, or at different locations or markets. If it is measured over time, it is a series of values P t {\displaystyle P_{t}} over time t {\displaystyle t} . A [time series](/source/Time_series) price index is calculated relative to a **base** or **reference** date. P 0 {\displaystyle P_{0}} is the value of the index at the base date. For example, if the base date is (the end of) 1992, P 0 {\displaystyle P_{0}} is the value of the index at (the end of) 1992. The price index is typically **normalized** to start at 100 at the base date, so P 0 {\displaystyle P_{0}} is set to 100.

The length of time between each value of t {\displaystyle t} and the next one, is normally constant regular time interval, such as a calendar year. P t {\displaystyle P_{t}} is the value of the price index at time t {\displaystyle t} after the base date. P t {\displaystyle P_{t}} equals 100 times the value of the commodity bundle at time t {\displaystyle t} , divided by the value of the commodity bundle at the base date. If the price of the commodity bundle has increased by one percent over the first period after the base date, then *P*1 = 101.

The **inflation rate** i t {\displaystyle i_{t}} between time t − 1 {\displaystyle t-1} and time t {\displaystyle t} is the change in the price index divided by the price index value at time t − 1 {\displaystyle t-1} :

i t = P t − P t − 1 P t − 1 {\displaystyle i_{t}={\frac {P_{t}-P_{t-1}}{P_{t-1}}}}

- = P t P t − 1 − 1 {\displaystyle ={\frac {P_{t}}{P_{t-1}}}-1}

expressed as a percentage.

## Real value

The nominal value of a commodity bundle tends to change over time. In contrast, by definition, the **real value** of the commodity bundle in aggregate remains the same over time. The real values of individual goods or commodities may rise or fall against each other, in relative terms, but a representative commodity bundle as a whole retains its real value as a constant from one period to the next. Real values can for example be expressed in [constant 1992 dollars](/source/Constant_dollars), with the price level fixed 100 at the base date.

Comparison of real and nominal gas prices 1996 to 2016, illustrating the formula for conversion. Here the base year is 2016.

The price index is applied to adjust the nominal value Q {\displaystyle Q} of a quantity, such as wages or total production, to obtain its real value. The real value is the value expressed in terms of [purchasing power](/source/Purchasing_power) in the base year. The index price divided by its base-year value P t / P 0 {\displaystyle P_{t}/P_{0}} gives the growth factor of the price index. Real values can be found by dividing the nominal value by the growth factor of a price index. Using the price index growth factor as a divisor for converting a nominal value into a real value, the real value at time *t* relative to the base date is:

- P 0 ⋅ Q t P t {\displaystyle {\frac {P_{0}\cdot Q_{t}}{P_{t}}}}

## Real growth rate

The real growth rate r t {\displaystyle r_{t}} is the change in a nominal quantity Q t {\displaystyle Q_{t}} in real terms since the previous date t − 1 {\displaystyle t-1} . It measures by how much the buying power of the quantity has changed over a single period.

- r t = P 0 ⋅ Q t P t / P 0 ⋅ Q t − 1 P t − 1 − 1 {\displaystyle r_{t}={\frac {P_{0}\cdot Q_{t}}{P_{t}}}{\Bigg /}{\frac {P_{0}\cdot Q_{t-1}}{P_{t-1}}}-1}

- - = P t − 1 ⋅ Q t P t ⋅ Q t − 1 − 1 {\displaystyle ={\frac {P_{t-1}\cdot Q_{t}}{P_{t}\cdot Q_{t-1}}}-1}

- - = Q t Q t − 1 ( P t P t − 1 ) − 1 − 1 {\displaystyle ={\frac {Q_{t}}{Q_{t-1}}}({\frac {P_{t}}{P_{t-1}}})^{-1}-1}

- - = 1 + g t 1 + i t − 1 {\displaystyle ={\frac {1+g_{t}}{1+i_{t}}}-1}

where g t {\displaystyle g_{t}} is the nominal growth rate of Q t {\displaystyle Q_{t}} , and i t {\displaystyle i_{t}} is the inflation rate.

- 1 + r t = 1 + g t 1 + i t {\displaystyle 1+r_{t}={\frac {1+g_{t}}{1+i_{t}}}}

For values of i t {\displaystyle i_{t}} between −1 and 1 (i.e. ±100 percent), we have the [Taylor series](/source/Taylor_series)

- ( 1 + i t ) − 1 = 1 − i t + i t 2 − i t 3 + . . . {\displaystyle (1+i_{t})^{-1}=1-i_{t}+i_{t}^{2}-i_{t}^{3}+...}

so

- 1 + r t = ( 1 + g t ) ( 1 − i t + i t 2 − i t 3 + . . . ) {\displaystyle 1+r_{t}=(1+g_{t})(1-i_{t}+i_{t}^{2}-i_{t}^{3}+...)}

- - - = 1 + g t − i t − g t i t + i t 2 + higher order terms. {\displaystyle =1+g_{t}-i_{t}-g_{t}i_{t}+i_{t}^{2}+{\text{higher order terms.}}}

Hence as a first-order (*i.e.* linear) approximation,

- r t = g t − i t {\displaystyle r_{t}=g_{t}-i_{t}}

## Real wages and real gross domestic products

The bundle of goods used to measure the [consumer price index](/source/Consumer_price_index) (CPI) is applicable to consumers. So for wage earners as consumers, an appropriate way to measure real wages (the buying power of wages) is to divide the nominal wage (after-tax) by the growth factor in the CPI. [Gross domestic product](/source/Gross_domestic_product) (GDP) is a measure of aggregate output. Nominal GDP in a particular period reflects prices that were current at the time, whereas real GDP compensates for inflation. Price indices and the U.S. [National Income and Product Accounts](/source/National_Income_and_Product_Accounts) are constructed from bundles of commodities and their respective prices. In the case of GDP, a suitable price index is the [GDP price index.](https://bea.gov/bea/glossary/glossary.cfm?key_word=GDP_price_index&letter=G#GDP_price_index) In the U.S. National Income and Product Accounts, nominal GDP is called *GDP in current dollars* (that is, in prices current for each designated year), and real GDP is called *GDP in [base-year] dollars* (that is, in dollars that can [purchase](/source/GDP_deflator#Calculation) the same quantity of commodities as in the base year).

## Example

If for years 1 and 2 (possibly a span of 20 years apart), the nominal wage and price level P of goods are respectively nominal wage rate: $10 in year 1 and $16 in year 2 price level: 1.00 in year 1 and 1.333 in year 2, then real wages using year 1 as the base year are respectively: $10 (= $10/1.00) in year 1 and $12 (= $16/1.333) in year 2. The real wage each year measures the buying power of the hourly wage in common terms. In this example, the real wage rate increased by 20 percent, meaning that an hour's wage would buy 20% more goods in year 2 compared with year 1.

## Real interest rates

Main article: [Real interest rate](/source/Real_interest_rate)

As was shown in the section above on the real growth rate,

- 1 + r t = 1 + g t 1 + i t {\displaystyle 1+r_{t}={\frac {1+g_{t}}{1+i_{t}}}}

where

- r t {\displaystyle r_{t}} is the rate of increase of a quantity in real terms,

- g t {\displaystyle g_{t}} is the rate of increase of the same quantity in nominal terms, and

- i t {\displaystyle i_{t}} is the rate of inflation,

and as a first-order approximation,

- r t = g t − i t . {\displaystyle r_{t}=g_{t}-i_{t}.}

In the case where the growing quantity is a [financial asset](/source/Financial_asset), g t {\displaystyle g_{t}} is a [nominal interest rate](/source/Nominal_interest_rate) and r t {\displaystyle r_{t}} is the corresponding [real interest rate](/source/Real_interest_rate); the first-order approximation r t = g t − i t {\displaystyle r_{t}=g_{t}-i_{t}} is known as the [Fisher equation](/source/Fisher_equation).[1] Looking back into the past, the [*ex post*](/source/Ex_post#ex_post) real interest rate is approximately the historical nominal interest rate minus inflation. Looking forward into the future, the expected real interest rate is approximately the nominal interest rate minus the expected inflation rate.

## Cross-sectional comparison

Not only [time-series](/source/Time-series) data, as above, but also [cross-sectional data](/source/Cross-sectional_data) which depends on prices which may vary geographically for example, can be adjusted in a similar way. For example, the total value of a good produced in a region of a country depends on both the amount and the price. To compare the output of different regions, the nominal output in a region can be adjusted by repricing the goods at common or average prices.

## See also

- [Aggregation problem](/source/Aggregation_problem)

- [Classical dichotomy](/source/Classical_dichotomy)

- [Constant Item Purchasing Power Accounting](/source/Constant_Item_Purchasing_Power_Accounting)

- [Cost-of-living index](/source/Cost-of-living_index)

- [Deflation](/source/Deflation)

- [Financial repression](/source/Financial_repression)

- [Fisher equation](/source/Fisher_equation)

- [Index (economics)](/source/Index_(economics))

- [Inflation](/source/Inflation)

- [Inflation accounting](/source/Inflation_accounting)

- [Inflation hedge](/source/Inflation_hedge)

- [Interest](/source/Interest)

- [Money illusion](/source/Money_illusion)

- [National accounts](/source/National_accounts)

- [Neutrality of money](/source/Neutrality_of_money)

- [Numéraire](/source/Num%C3%A9raire)

- [Real interest rate](/source/Real_interest_rate)

- [Real prices and ideal prices](/source/Real_prices_and_ideal_prices)

- [Template:Inflation](https://en.wikipedia.org/wiki/Template:Inflation) – for price conversions in Wikipedia articles

## References

1. **[^](#cite_ref-1)** Benninga, Simon; Oded Sarig (1997). [Corporate Finance: A Valuation Approach](https://archive.org/details/corporatefinance00benn). [The McGraw-Hill Companies](/source/The_McGraw-Hill_Companies). pp. [21](https://archive.org/details/corporatefinance00benn/page/21). [ISBN](/source/ISBN_(identifier)) [0-07-005099-6](https://en.wikipedia.org/wiki/Special:BookSources/0-07-005099-6).

## Bibliography

- [Diewert, W. E.](/source/Walter_Erwin_Diewert) (2008) [1987]. "Index Numbers". [*The New Palgrave Dictionary of Economics*](/source/The_New_Palgrave_Dictionary_of_Economics) (2nd ed.). pp. 1–32. [doi](/source/Doi_(identifier)):[10.1057/978-1-349-95121-5_940-2](https://doi.org/10.1057%2F978-1-349-95121-5_940-2). [ISBN](/source/ISBN_(identifier)) [978-1-349-95121-5](https://en.wikipedia.org/wiki/Special:BookSources/978-1-349-95121-5).

- O'Donnell, R. (1987). "Real and Nominal Quantities". *The New Palgrave: A Dictionary of Economics*. Vol. v. 4. pp. 97–98. ([Adam Smith](/source/The_Wealth_of_Nations)'s early distinction vindicated)

- [Sen, Amartya](/source/Amartya_Sen) (1979). "The Welfare Basis of Real Income Comparisons: A Survey". *[Journal of Economic Literature](/source/Journal_of_Economic_Literature)*. **17** (1): 1–45. [JSTOR](/source/JSTOR_(identifier)) [2723639](https://www.jstor.org/stable/2723639).

- Usher, D. (1987). "Real Income". *The New Palgrave: A Dictionary of Economics*. Vol. v. 4. pp. 104–05.

## External links

- [DataBasics: Deflating Nominal Values to Real Values](http://www.dallasfed.org/research/basics/nominal.cfm) from [Federal Reserve Bank of Dallas](/source/Federal_Reserve_Bank_of_Dallas)

- [CPI Inflation Calculator](http://data.bls.gov/cgi-bin/cpicalc.pl) from U.S. [Bureau of Labor Statistics](/source/Bureau_of_Labor_Statistics)

v t e Economics Theoretical Microeconomics Decision theory Price theory Game theory Contract theory Mechanism design Macroeconomics Mathematical economics Complexity economics Computational economics Agent-based computational economics Behavioral economics Pluralism in economics Empirical Econometrics Economic statistics Experimental economics Economic history Applied Agriculture Business Cultural Demographic Development Ecological Education Engineering Environmental Evolutionary Financial Geographic Happiness Health History Information Infrastructure Institutions Labour Law Management Non-monetary Organization Participation Personnel Planning Policy Public sector Public choice Social choice Regional Regulatory Resources Rural Service Transport Urban Welfare Schools (history) Attention Mainstream Heterodox American (National) Ancient thought Austrian Behavioral Buddhist Chartalism Modern monetary theory Chicago Classical Critique of political economy Democratic Disequilibrium Ecological Evolutionary Feminist Freiwirtschaft Georgism Happiness Historical Humanistic Institutional Keynesian Neo- (neoclassical–Keynesian synthesis) New Post- Circuitism Malthusianism Marginalism Marxian Neo- Mercantilism Mixed Mutualism Neoclassical Lausanne New classical Real business-cycle theory New institutional Physiocracy Socialist Stockholm Supply-side Thermo Economists de Mandeville Quesnay Smith Malthus Say Ricardo von Thünen List Bastiat Cournot Mill Gossen Marx Walras Jevons George Menger Marshall Edgeworth Clark Pareto von Böhm-Bawerk von Wieser Veblen Gesell Fisher Pigou Heckscher von Mises Schumpeter Keynes Knight Polanyi Frisch Sraffa Myrdal Hayek Kalecki Röpke Kuznets Tinbergen Robinson von Neumann Hicks Lange Leontief Galbraith Koopmans Schumacher Friedman Samuelson Simon Buchanan Arrow Baumol Solow Rothbard Greenspan Sowell Becker Ostrom Sen Lucas Stiglitz Thaler Hoppe Krugman Piketty more Lists Glossary Economists Publications (journals) Schools Category Index Lists Outline Publications Business portal

v t e Economic history of the United States and Commonwealth of Nations countries Commercial revolution (1000–1760) Great Bullion Famine (c. 1400–c. 1500) Great Slump (1430–1490) The Great Debasement (1544–1551) Financial Revolution (1690–1800) Slump of 1706 Great Frost of 1709 South Sea bubble (1713–1720) Mississippi bubble (1717–1720) Economic impact of the Seven Years' War (1754–1763) 1st Industrial Revolution/ Market Revolution (1760–1870) Industrial Revolution Scotland United States Wales Bengal Bubble of 1769 (1769–1784) British credit crisis of 1772–1773 American Revolutionary War inflation (1775–1783) Panic of 1785 (1785–1788) Copper Panic of 1789/Panic of 1792 (1789–1793) Canal Mania (c. 1790–c. 1810) Panic of 1796–1797 (1796–1799) 1802–1804 recession Carolina gold rush (1802–1825) Depression of 1807 (1807–1810) 1810s Alabama real estate bubble Alabama Fever 1812 recession Post-Napoleonic Depression (1815–1821) 1822–23 recession Panic of 1825 Panic of 1826 1828–29 recession Georgia Gold Rush (1828–c. 1840) 1830s Chicago real estate bubble 1833–34 recession Panic of 1837 (1836–1838 and 1839–1843) U.S. state defaults in the 1840s Railway Mania (c. 1840–c. 1850) Plank Road Boom (1844–c. 1855) 1845–46 recession Panic of 1847 (1847–1848) California gold rush (1848–1855) British Columbia gold rushes Queen Charlottes Gold Rush, 1851 Fraser Canyon Gold Rush, 1858 Rock Creek Gold Rush, 1859 Similkameen Gold Rush, 1860 Stikine Gold Rush, 1861 Cariboo Gold Rush, 1861–1867 Wild Horse Creek Gold Rush, 1863–1870 Leechtown Gold Rush, 1864–1865 Big Bend Gold Rush, c. 1865 Omineca Gold Rush, 1869 Victorian gold rush (1851–c. 1870) New South Wales gold rush (1851–1880) Australian gold rushes (1851–1914) 1853–54 recession Panic of 1857 (1857–1858) Pike's Peak gold rush (1858–1861) Pennsylvania oil rush (1859–1891) 1860–61 recession Colorado River mining boom (1861–1864) Otago gold rush (1861–1864) U.S. Civil War economy (1861–1865) First Nova Scotia Gold Rush (1861–1874) West Coast Gold Rush (1864–1867) Panic of 1866 (1865–1867) Vermilion Lake gold rush (1865–1867) Kildonan Gold Rush (1869) Black Friday (1869–1870) Gilded Age/ 2nd Industrial Revolution (1870–1914) Coromandel Gold Rushes (c. 1870–c. 1890) Cassiar Gold Rush (c. 1870–c. 1890) Long Depression 1873–1879; Panic of 1873 Black Hills gold rush (1874–1880) Colorado Silver Boom (1879–1893) Western Australian gold rushes (c. 1880–c. 1900) Indiana gas boom (c. 1880–1903) Ohio oil rush (c. 1880–c. 1930) Depression of 1882–1885 Panic of 1884 Cayoosh Gold Rush (1884) Witwatersrand Gold Rush (1886) 1887–88 recession Baring crisis (1890–1891) Cripple Creek Gold Rush (c. 1890–c. 1910) Panic of 1893 (1893–1897) Australian banking crisis of 1893 Black Monday (1894) Panic of 1896 Klondike Gold Rush (1896–1899) Second Nova Scotia Gold Rush (1896–1903) Kobuk River Stampede (1897–1899) Mount Baker gold rush (1897–c. 1925) 1899–1900 recession Nome Gold Rush (1899–1909) Fairbanks Gold Rush (c. 1900–c. 1930) Texas oil boom (1901–c. 1950) Panic of 1901 (1902–1904) Cobalt silver rush (1903–c. 1930) Panic of 1907 (1907–1908) Porcupine Gold Rush (1909–c. 1960) Panic of 1910–11 (1910–1912) Financial crisis of 1914 (1913–14) World War home fronts/ Interwar period (1914–1945) World War I economy and home fronts Australia Canada United Kingdom United States Post–World War I recession (1918–1919) Recession of 1920–1921 1920s Florida land boom (c. 1920–1925) Roaring Twenties 1923–1924 recession 1926–1927 recession Great Depression 1929–1939; Wall Street crash of 1929 Panic of 1930 Great Contraction, 1929–1933 Recession of 1937–1938 Australia Canada India South Africa United Kingdom United States 1930s Kakamega Gold Rush Third Nova Scotia Gold Rush (1932–1942) World War II home front Australia Canada United Kingdom United States Post–WWII expansion/ 1970s stagflation (1945–1982) Great Compression 1945 recession Recession of 1949 (1948–1949) Hong Kong and Singapore Asian Tiger expansions (1950–1990) 1951 Canada recession Recession of 1953 (1953–1954) Recession of 1958 (1957–1958) Recession of 1960–1961 Kennedy Slide of 1962 Poseidon bubble (1969–1970) Recession of 1969–1970 1970s commodities boom 1973–1975 recession 1973–1974 stock market crash Secondary banking crisis of 1973–1975 1970s energy crisis 1973–1980; 1973 oil crisis 1979 oil crisis Steel crisis (1973–1982) 1976 sterling crisis Silver Thursday (1980) Early 1980s recession 1980–1982; United States Computer Age/ Second Gilded Age (1982–present) Great Moderation (1982–2007) 1980s oil glut Black Saturday (1983) New Zealand property bubble (c. 1985–) Savings and loan crisis (1986–1995) Black Monday (1987) Friday the 13th mini-crash (1989) Early 1990s recession 1990–1991; Australia United States 1990 oil price shock Rhode Island banking crisis (1990–1992) 1991 Indian economic crisis 1990s United States boom (1991–2001) 1990s India economic boom Hyperinflation in Zimbabwe (1991–present) Black Wednesday (1992) 1994 bond market crisis 1994 Papua New Guinea financial crisis Dot-com bubble 1995–2004; Stock market downturn of 2002 1997 Asian financial crisis October 27, 1997, mini-crash Early 2000s recession 2001; 9/11 stock market crash 2000s commodities boom (2000–2014) United States housing bubble (2002–2006) Canadian property bubble (2002–) 2003 Myanmar banking crisis 2000s energy crisis (2003–2008) North Dakota oil boom (2006–2015) Uranium bubble of 2007 Great Recession 2007–2009; Australia and New Zealand Bangladesh, India, Malaysia, Pakistan, and Sri Lanka British West Indies Canada South Africa United Kingdom United States 2008 financial crisis September October November December 2009 Subprime mortgage crisis 2000s U.S. housing market correction U.S. bear market of 2007–2009 2007–2010 U.S. bank failures Corporate debt bubble (2008–) Blue Monday Crash 2009 2010 flash crash Malaysia Tiger Cub expansion (2010s) Australian property bubble (2010–) August 2011 stock markets fall Black Monday 2011 Bangladesh share market scam Cryptocurrency bubble (2011–) Puerto Rican government-debt crisis (2014–2022) 2015–2016 stock market selloff Brexit stock market crash (2016) 2017 Sri Lankan fuel crisis Ghana banking crisis (2017–2018) Sri Lankan economic crisis (2019–2024) COVID-19 recession 2020–2022; 2020 stock market crash financial market impact sectoral impacts shortages Canada India Malaysia New Zealand United Kingdom United States 2020s commodities boom Global energy crisis 2021–2023; 2021 United Kingdom natural gas supplier crisis regional effects 2021–2023 global supply chain crisis 2021–2023 inflation surge Pakistani economic crisis (2021–2024) 2022 stock market decline 2022–2023 global food crises 2023 United Kingdom recession 2023 United States banking crisis 2025 stock market crash Countries and sectors Australia rail transport slavery whaling/Western Australia Canada agriculture currencies early banking system list of recessions petroleum industry rail transport slavery technological and industrial whaling/Pacific Northwest Ghana India agriculture Company rule maritime British Raj Deindustrialisation salt tax slavery Malaysia New Zealand whaling Nigeria slavery Pakistan maritime rail transport South Africa slavery whaling Uganda United Kingdom Agricultural Revolution Atlantic slave trade banking British Empire English fiscal system Interwar unemployment and poverty list of recessions maritime/England/Scotland Middle Ages England/agriculture national debt Scotland/agriculture/Middle Ages rail transport/pre–1830/1830–1922/1923–1947/1948–1994/1995–present slavery trade unions Victorian era Wales whaling/Scotland United States agriculture banking/colonial-era credit/cooperatives/investment banking/wildcat banking business central banking coal mining indentured servitude iron and steel industry labor list of economic expansions list of recessions lumber industry maritime/colonial-era/1776–1799/1800–1899/1900–1999/2000–present monetary policy poverty petroleum industry/oil shale public debt rail transportation slavery/colonial-era slavery/forced labor/slave trade/slave markets tariffs taxation technological and industrial United States dollar whaling Zimbabwe Business cycle topics Aggregate demand/Supply Effective demand General glut Model Overproduction Paradox of thrift Price-and-wage stickiness Underconsumption Inflation and unemployment Chronic Classical dichotomy Debasement Debt monetization Demand-pull/cost-push/built-in inflation Deflation Disinflation Full employment Hyperinflation Money supply/demand NAIRU Natural rate of unemployment Neutrality of money Phillips curve Price level Real and nominal value Sahm rule Velocity of money Expansion Miracle Recovery Stagnation Interest rate Nominal interest rate Real interest rate Yield curve/Inverted Recession Balance sheet Depression Global Rolling Shapes Stagflation Shock Demand Supply Credit cycle topics Financial bubble Commodity booms/diamond rush/gold rush/oil boom Real-estate bubble/housing bubble/boomtown/ghost town Speculation Stock market bubble Financial crisis Bank run/bank failure Commodity price shocks Credit crunch Currency crisis Debt crisis Energy crisis Liquidity crisis/accounting/capital/funding/market Minsky moment/leverage cycle Stock market crash/Flash crash Social contagion Financial contagion Irrational exuberance Market trend Proposed bubbles AI bubble/AI boom/Fourth Industrial Revolution/Imagination Age Carbon bubble/Age of Oil/Peak oil Everything bubble Green bubble Social media stock bubble Unicorn bubble U.S. higher education bubble

---
Adapted from the Wikipedia article [Real and nominal value](https://en.wikipedia.org/wiki/Real_and_nominal_value) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Real_and_nominal_value?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.