deflator

Thân thiện

A line graph shows the GDP deflator rising steadily over several years.

Definition

1. Noun:
   • A statistical factor designed to remove the effect of inflation: A "deflator" is a numerical value or index used in economics and statistics to adjust monetary figures, allowing for comparison of economic data across different time periods by eliminating the distorting effects of price changes (inflation or deflation).
   • A price index used to convert nominal values into real values: It serves as a tool to express economic measures, such as Gross Domestic Product (GDP), in constant monetary terms, reflecting changes in volume or quantity rather than just price.

Usage Examples

• Noun:
  • The GDP deflator is a broad measure of inflation within an economy.
  • Economists used a price deflator to adjust the nominal sales figures and calculate real growth.
  • To compare the company's revenue over ten years, we must apply an appropriate deflator.

Advanced Usage

• Implicit vs. Explicit Deflators: An "implicit deflator" (like the GDP deflator) is derived by dividing a nominal series by its real counterpart. An "explicit deflator" is a directly specified price index, such as the Consumer Price Index (CPI), used for adjustment.
  • The implicit GDP deflator is calculated annually by the statistical bureau.
• "To deflate" (verb): The related action of using a deflator to adjust figures.
  • The data was deflated using the latest consumer price index.

Variants and Related Words

• Deflate (verb): To adjust (economic figures) by removing the effects of inflation.
  • They had to deflate the earnings report to show true performance.
• Deflation (noun): A general decline in prices, the opposite of inflation.
  • The period was marked by deflation and falling asset values.
• Inflation (noun): A general increase in prices and fall in the purchasing value of money.
  • High inflation complicates economic planning.

Synonyms

• Price index: A measure of the average change in prices over time.
• Adjustment factor: A general term for a value used to modify data to account for specific conditions.

Related Phrases

• GDP deflator (noun phrase): A specific deflator that measures the level of prices of all new, domestically produced, final goods and services in an economy.
  • The GDP deflator indicated that inflation was lower than the CPI suggested.
• Price deflator (noun phrase): Another term for a deflator, emphasizing its role in adjusting for price changes.
  • A reliable price deflator is essential for historical cost analysis.

Học thuật

Noun

1. a statistical factor designed to remove the effect of inflation; inflation adjusted variables are in constant dollars