Chained dollars: Difference between revisions
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| ⚫ | '''Chained dollars''' is a method of adjusting real dollar amounts for [[inflation]] over time, so as to allow comparison of figures from different years.<ref>Mark McCracken, [http://www.teachmefinance.com/Scientific_Terms/Chained_dollars.html Definition of Chained dollars] TeachMeFinance.com. Accessed 2009.05.11.</ref> The U.S. Department of Commerce introduced the chained-dollar measure in 1996. Chained dollars generally reflect dollar figures computed with 2000 as the base year. |
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| ⚫ | The technique is so named because the second number in a pair of successive years becomes the first in the next pair. The result is a "chain" of weights and averages. <ref>U.S. Department of Energy, [http://www.eia.doe.gov/emeu/consumptionbriefs/recs/natgas/chained.html Chained Dollars], citing EIA, ''Annual Energy Review 1999''.</ref> The advantage of using the chained-dollar measure is that it is more closely related to any given period covered and is therefore subject to less distortion over time.<ref>Mark McCracken, ''op. cit.''</ref> |
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| ⚫ | The technique is so named because the second number in a pair of successive years becomes the first in the next pair. The result is a "chain" of weights and averages. <ref>[http://www.eia.doe.gov/emeu/consumptionbriefs/recs/natgas/chained.html Chained |
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==See also== |
==See also== |
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Revision as of 19:53, 11 May 2009
Chained dollars is a method of adjusting real dollar amounts for inflation over time, so as to allow comparison of figures from different years.[1] The U.S. Department of Commerce introduced the chained-dollar measure in 1996. Chained dollars generally reflect dollar figures computed with 2000 as the base year.
The technique is so named because the second number in a pair of successive years becomes the first in the next pair. The result is a "chain" of weights and averages. [2] The advantage of using the chained-dollar measure is that it is more closely related to any given period covered and is therefore subject to less distortion over time.[3]
See also
References
- ^ Mark McCracken, Definition of Chained dollars TeachMeFinance.com. Accessed 2009.05.11.
- ^ U.S. Department of Energy, Chained Dollars, citing EIA, Annual Energy Review 1999.
- ^ Mark McCracken, op. cit.
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