Lastly, the division and nominal value of the shares had not been specified.

Although accounting rules often permit banks to price these assets at face value, it is generally believed that the fundamental value of many toxic assets has fallen significantly below face value.

The error is called the money illusion the belief that a nominal unit of currency is the best measure of value, even though its real value is unstable.

Unless the renminbi falls in value, this translates into an average nominal increase of at least 10 11 in dollar terms.

The alternative is to cut the face value of Greece s debt.

Inflation has caused the face value of coins to fall below the hard currency value of the historically used metals.

If we take this metaphor at face value, there is a surprising consequence.

And inflation is like default a capital levy on holders of public debt, as it reduces the real value of nominal liabilities at fixed interest rates.

In the face of downward nominal wage rigidity, higher inflation would facilitate sectoral adjustment and achieve a small but useful impact on reducing debt burdens.

Suppose that the bank has assets with long maturity and a face value of 1.2 billion but whose current economic value is only 1 billion.

But even AAA rated CDOs, which the US ratings agencies had called equivalent in safety to government bonds, are now only worth one third of their nominal value.

Unemployment harms workers, while the lower interest rates needed to generate more jobs may lead to higher inflation, which especially harms those with nominal assets whose value is eroded.

The test statistic T in this instance could be set to be the sum of squares about the sample mean, divided by the nominal value for the variance (i.e.

Alternatively, the debt holders can agree to reduce the face value of debt, in exchange for some warrants.

And, with the face value of the debt unchanged, the psychological drag on expectations and investment might linger.

The original copper coins ( as ) had a face value of one Roman pound of copper, but weighed less.

Aftermath All the main stock indexes of the future G7 bottomed out between September and December 1974, having lost at least 34 of their value in nominal terms, and 43 in real terms.

The indispensible first step, however, is a deep write down of Greek debt to less than half its face value.

America s credibility, already low in Yemen, has hit rock bottom its leaders words are no longer taken at face value.

The value of improvisation in the face of novel threats does not imply that existing rules should be peremptorily discarded.

It is time to face the fact that Europe s peripheral countries have to shrink their nominal GDP to regain competitiveness. The only question is whether they will take the euro down as well.

I immediately sell that bond in the market, for 0.91, so I get 9.1 million ( 0.91 x 10 million at face value).

Throughout the world, people suffer from a serious perception error that has inhibited them from taking concrete steps to protect themselves from inflation or deflation. The error is called the money illusion the belief that a nominal unit of currency is the best measure of value, even though its real value is unstable.

This can be accomplished in two ways sharply cutting the interest rate paid by Greece, or reducing the face value of the debt.

And others have been far too willing to accept at face value submissions from countries where the rule of law is routinely abused.

The real value of the Chinese renminbi, for example, has appreciated considerably relative to the US dollar, despite limited nominal exchange rate changes, because China s domestic prices have risen faster than have prices in the United States.

Other There are codes using colors, like traffic lights, the color code employed to mark the nominal value of the electrical resistors or that of the trashcans devoted to specific types of garbage (paper, glass, biological, etc.

The nominal reason is Hamas s refusal to recognize Israel.

So, if Latin American countries wanted to export higher value added goods, they would face significantly higher tariffs, undermining their competitiveness in Asian markets.

Since 1975, the nominal annual premium on the 30 year Treasury bill has averaged 2.2 in other words, over its lifespan, the 30 year nominal T bill yields are 2.2 percentage points more than the expected average of future short term nominal T bill rates.

Its nominal interest rates will rise as bondholders fear inflation.

I borrow, at face value, 10 million of the Greek government s 2016 bond, which is then trading at 0.91, from Goldman Sachs for six months.

Diana might have had a better life in the US, where people and the media are more ready to accept good intentions at face value.

China, meanwhile, with foreign reserves worth half its total output, denies with a straight face that it is deliberately manipulating the value of the renminbi.

Taken at face value, it seems to suggest that governments have all but abandoned their commitments to the World Trade Organization and the multilateral trade regime.

And yet, in the end, Greece had little choice but to restructure its debt, cutting the value of private claims by about 75 relative to their face value (although even this is probably not enough to make the country s debt burden sustainable).

But, after so many disappointments, China cannot accept at face value the assurances of European politicians, which even they themselves do not know whether they can redeem.

The Argentine Government undertook a first debt swap in June 2001 government bonds with a face value of 29.5 billion were voluntarily exchanged for longer term instruments.

In his 1908 essay Der moderne Denkmalkultus (The modern cult of monuments) he describes historical value, artistic value, age value, commemorative value, use value, and newness value.

If inflation rises, nominal house prices don t need to fall as much.

Nominal wages may increase, while real wages stagnate, owing to higher inflation.

Banks issue securities with attractive nominal interest rates but unknown repayment probability.

They bought the old bonds at a fraction of their face value, and then used litigation to try to force Argentina to pay 100 cents on the dollar.

The final tab on the toxic mortgage bailout and other assets is likely to be a larger percentage of a larger amount, but still far less than the face value of the loans, because the underlying assets will in many cases retain considerable value.

But, while such an announcement is an obvious no brainer for those in the Macroeconomic Camp, it would make all bankers who hold nominal assets or who think in nominal terms physically ill.