reaaliarvoisena

reaaliarvoisena is a Finnish word that translates to "as a real value" or "in real terms." It is used in various contexts, particularly in economics and finance, to distinguish between nominal values and values adjusted for inflation. When a quantity is expressed reaaliarvoisena, it means its purchasing power has been taken into account, providing a more accurate picture of its true worth over time.

For instance, if a salary increase is stated in nominal terms, it might appear higher, but if inflation has risen at a faster rate, the real value of that salary may have actually decreased. Therefore, expressing economic indicators like GDP, wages, or interest rates reaaliarvoisena allows for a clearer comparison of economic performance and trends across different periods. This adjustment is crucial for understanding the actual growth or decline in wealth and economic activity, free from the distortions caused by changes in the general price level. The calculation typically involves dividing the nominal value by a price index, such as the consumer price index.