Chained dollars is a method of adjusting real dollar amounts for inflation over time, to allow the comparison of figures from different years. The U.S. Department of Commerce introduced the chained-dollar measure in 1996. It generally reflects dollar figures computed with 2009 as the base year.
This Section may be too technical for most readers to understand.May 2019) (Learn how and when to remove this template message)(
- Constant Dollars: weighted by a constant/unchanging basket/list of goods and services.
- Chained Dollars: weighted by a basket/list that changes yearly to more accurately reflect actual spending. The basket is an average of the basket for successive pairs of years; example of paired years are 2010–2011, 2011–2012, etc.
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 continuous "chain" of weights and averages. The advantage of using the chained-dollar measure is that it is more closely related to any given period covered and is subject to less distortion over time.
- Selected Per Capita Product and Income Series in Current and Chained Dollars (U.S. Bureau of Economic Analysis)
|This economics-related article is a stub. You can help Wikipedia by expanding it.|