from The American Heritage® Dictionary of the English Language, 4th Edition
- n. The automatic adjustment of an economic variable, such as wages, taxes, or pension benefits, to a cost-of-living index, so that the variable rises or falls in accordance with the rate of inflation.
from Wiktionary, Creative Commons Attribution/Share-Alike License
- n. the adjustment of an economic variable (such as a salary) according to an index (such as that of inflation)
from the GNU version of the Collaborative International Dictionary of English
- n. a system of economic regulation in which wages and interest are tied to the cost-of-living index in order to compenaste for the effects of inflation.
from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.
- 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
But he questions whether wage indexation is in fact even feasible in the long run. indexing future retirement benefits to wages is analytically equivalent to indexing them to the overall returns experienced by the owners of capital ... the government faces a massive quandary if it tries to guarantee relative living standards via wage indexation while funding the program with less risky investments like short - or intermediate-term government bonds.
Progressive indexation is not well designed to address future uncertainties.
In short, progressive indexation is a mechanism that would "work" when we didn't need it and wouldn't work when we needed it most.
I would be supportive of budget actions that changed indexation from the cpi to a more accurate, and anti-inflationary measure of general price-level changes, an example being an index known as the GNP price deflator.
The conflict between spot and long-term indexation of gas prices is likely to end in a compromise.
So if you paid income tax at 40% you paid CGT at 40% but you got an allowance for inflation called the indexation allowance.
It offers hierarchical grouping, keyword indexation, smart group, xml import/export of the database, search system with boolean function, batch rename, batch edit of IPTC & XMP fields, among many other features.
Such pay "indexation" helps explain why Spanish wages are rising fast, even though a housing bust there is tipping the economy into crisis.
Many readers understand that some taxes will have to rise to help reduce the huge deficit but they believe an immediate rise from 18pc to 40pc is "draconian" and suggest that, if it has to rise, some kind of indexation should be introduced to take inflationary gains into account.
It is still unclear how regular premium life policies with contractual increases, such as indexation, will be treated.