An economic variable whose value is linked to an index number. Index-linked government securities have their interest and redemption payments linked to a suitable price index, for example the Retail Price Index (RPI). Wage rates and pensions may also be index-linked, again normally to the RPI. Index-linked securities or pensions may be linked either to the RPI or to some index of share prices. The advantage of index-linked securities or incomes is that they protect the holder against the effects or large unforeseen changes in the value of money. A wide spread of index-linking arrangements in an economy may help to make inflation more difficult to stop, as it eliminates the effects of price increases in reducing the real claims on the rest of the economy of holders of cash and of securities whose value is fixed in cash terms.

• intertemporal budget constraint
• intertemporal substitution
• interval, confidence
• intervention in foreign exchange markets
• intervention, intra-marginal
• intra-industry trade
• intra-marginal intervention
• intra-marginal intervention in foreign exchange markets
• intrapreneur
• invention
• inventories
• inverse function
• investment
• investment bank
• investment incentives
• investment income
• investment income surcharge
• investment in stocks and work in progress
• Investment Management Regulatory Organization
• investment trust
• investor, relationship
• invisible balance
• invisible hand
• invisibles
• involuntary unemployment