constant dollars



  • Dollars of constant purchasing power. That is, corrected for inflation. More precisely includes reference to a base year for comparison, e.g. "in constant 1992 dollars." Same as constant prices.


  • A term used to describe the value of the dollar on a previous date as a benchmark. Constant dollars may be used as a measuring unit to estimate comparative worth of an item or asset in the present. This metric adjusts for inflation and gives a better sense of how well a particular investment has done over time in real terms. The loss of strength of the dollar over time is even more apparent on the Foreign exchange market since the USD is continuously compared directly to the value of other currencies.