How Do You Spell INDEX-LINKING?

Pronunciation: [ˈɪndɛkslˈɪŋkɪŋ] (IPA)

The spelling of the word "index-linking" follows a straightforward phonetic pattern utilizing the International Phonetic Alphabet (IPA). The first syllable "in-" is pronounced as in the word "insect," while the second syllable "-dex" is pronounced with a short "e" sound as in "bed." The final syllable "-linking" is pronounced with a stressed "i" as in "find" and a soft "g" sound. The combined result is a word that sounds like "IN-deks-LINK-ing." Index-linking refers to adjusting financial values based on changes in a particular index, typically inflation.

INDEX-LINKING Meaning and Definition

  1. Index-linking is a financial term that refers to the process of adjusting the value of something, such as a wage or a pension, in relation to an index or a specific benchmark. This mechanism is commonly used to counteract the effects of inflation, ensuring that the value of an asset or income remains relatively stable over time.

    Generally, index-linking involves periodically adjusting the value of a financial asset or payment based on changes in an agreed-upon index. This index can be representative of various economic indicators or price movements, such as the Consumer Price Index (CPI), Retail Price Index (RPI), or a specific market benchmark.

    By applying index-linking, individuals or organizations can safeguard against the eroding effects of inflation on their financial standing. For example, if a pension scheme is index-linked, the payments made to pensioners are periodically adjusted to reflect the changes in the chosen index. This adjustment ensures that the purchasing power of the pension remains relatively constant, even as prices and living costs increase.

    Index-linking can also be used in the context of wage adjustments. Many employment contracts stipulate that wages or salaries are index-linked to the prevailing inflation rate. This means that as the cost of living rises, wages will be adjusted accordingly to help employees maintain their real standard of living.

    In summary, index-linking is a financial practice that adjusts the value of an asset or income based on changes in an agreed index or benchmark, primarily to mitigate the impact of inflation and maintain relative financial stability.

Common Misspellings for INDEX-LINKING

  • undex-linking
  • jndex-linking
  • kndex-linking
  • ondex-linking
  • 9ndex-linking
  • 8ndex-linking
  • ibdex-linking
  • imdex-linking
  • ijdex-linking
  • ihdex-linking
  • insex-linking
  • inxex-linking
  • incex-linking
  • infex-linking
  • inrex-linking
  • ineex-linking
  • indwx-linking
  • indsx-linking
  • inddx-linking
  • indrx-linking

Etymology of INDEX-LINKING

The term "index-linking" is formed by combining two words: "index" and "linking".

1. "Index" comes from the Latin word "indic-" which means "forefinger" or "pointer". In ancient Rome, a pointer or indicator was used to mark important passages in a book. Over time, this evolved to refer to a list of important items or references in a document or book.

2. "Linking" is derived from the Old English word "hlencan", meaning "to join" or "to connect". It refers to creating a connection or relationship between two or more things.

Therefore, "index-linking" refers to the concept of creating a connection or relationship with an index, typically used to describe the process of adjusting prices, wages, or other financial metrics according to an index or reference point.

Plural form of INDEX-LINKING is INDEX-LINKINGS