# Index money

- Canonical URL: https://www.gerhardmerk.de/index-money
- Post ID: 587358
- Modified: 2023-07-25T21:01:20+00:00
- Language: en

## Definition

The contractual linking of longer-term (at medium and long term) monetary claims to a price index for the purpose of value protection. This is because when money is used as a means of transferring credit, the creditor incurs losses in the event of a deterioration in the value of money. - The legal system generally prohibits such contracts because they lead to a split of functions of the legal tender. It would still be used as a unit of account and an intermediate means of exchange, but no longer as a store of value. - In order to protect against impairment, however, the main means left is to use sliding-scale interests clauses. Here, the amount of interest to be paid can and may be linked to the inflation rate. - See investment substitution, bond, index-linked, issue, indexed, EuroNotes, futures, monetary stability, gold price, haven, safer, index funds, menu costs, swaps, inflation-indexed. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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