Web Site

Economy-point.org



» Economics » Topics begins with M » Material size


Page modified: Friday, June 23, 2006 20:29:04

The term material size designates a settled nominal value in the economic science. Different definitions within the ranges political economy and financing exist.

Political economy

In the political economy a material size designates one around the price history settled variable. Examples of material sizes are:

  • the material gross domestic product (GROS DOMESTIC PRODUCT), one around inflation effects settled value (nominal) GROS DOMESTIC PRODUCT. In contrast to the nominal GROS DOMESTIC PRODUCT, which is provided in the prices of the respective taxation period (to market prices), the material GROS DOMESTIC PRODUCT by price indices on the basis the prices of a fixed base year computed. A goal is it to determine the change of the actually provided achievements and to filter changes, which result due to price fluctuations. This is necessary, in order to ensure the comparability of the numbers over several years.
  • the material interest, i.e. the nominal interest charges (nominal interest rate), settled around the inflation.
  • real wages, i.e. the wages in relation to the general price level. The material wages, the purchasing power of the performed work, are thus regarded in connection with the price history, whereby the actual wage development is to become more transparent.

Financing

In the financing teachings the material size, similarly as in the VWL, designates a settled value. This is in particular with obligations of interest. For example the interest charges are indicated of loans as interest charges of the nominal value (usually 100 monetary units), i.e. that the annual interest payment does not depend on the actual issue price or buying rate, but of the nominal value confirmed by a document in the document (one speaks also here of the nominal interest rate). The issue price or buying rate can deviate however partial strongly from the nominal value (extreme case zero-coupon loan or Zero bond, without interest charges) which affects the actual, or material interest charges over the running time. One speaks also of the effective interest or the net yield. In the reverse case, the admission of a loan, the agreement of a Disagios (also Damnum) can affect the material interest charges.


Related Websites

We found here 5 related websites.

Page cached: Wednesday, July 5, 2006 14:16:47
Valid XHTML 1.0!  Valid CSS!

Page copy protected against web site content infringement by Copyscape