Advertisement - Continue reading below

Definition of "indexation" [indexation]

  • 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. (noun)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Use "indexation" in a sentence
  • "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."
Words like "indexation"