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A country wishing for its currency to fall in value, particularly when confronted with a continual appreciation of its value against major trading partner currencies, the central bank may work to lower real interest rates, reducing the returns to capital.
Nominal GDP
The market value of all final goods and services produced within a country in a given period, measured in current prices.
Base Year
A specific year against which economic growth is measured, serving as a standard comparison for other years in index calculations and real values.
Real GDP
Gross Domestic Product adjusted for inflation, reflecting the value of all goods and services produced by an economy in a given year.
Inflation
A measure of the rate at which the general level of prices for goods and services is rising, leading to a decrease in purchasing power.
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