indexation
in dek say shuhn
- n a system of economic regulation: wages and interest are tied to the cost-of-living index in order to reduce the effects of inflation
- Economists believe the consumer price index, which is used as a guideline for federal indexation, often overstates inflation by perhaps 2% because it exaggerates the cost of housing.
- While indexation fans Brazilian inflation, one root cause of rising prices is excessive government spending.
- Indexation, however, did not prevent some painful constraints, nor deter those trying to anticipate the next round of price rises.