Illustrate the need for, motivation, and concept of Indexation with an example to protect against Inflation in the Global Debt Markets.© BrainMass Inc. brainmass.com June 4, 2020, 3:08 am ad1c9bdddf
Indexation is used to adjust income payments by means of a price index so that the purchasing power is maintained after inflation. The need for Indexation arises from inflation on those that receive or make payments. The motivation is that when inflation is unavoidable the payments lose their purchasing power over time. The need to protect the real value of payments from the effect of ...
Market Indexation is discussed step-by-step in this solution. The response also includes the sources used.