Tabular standard

Tabular standard is a proposed method for the settlement of deferred payments (sums due after the passage of time) wherein the sum due changes in accordance with changes in a standard which is believed to reflect changes in the purchasing power of the monetary unit with the passage of time. The tabular standard specifies a previously agreed upon table which adds the prices for specified quantities of a selected group of commodities as of the date of the agreement and again at the dates that payments are due. The percentage change from the original date is supposed to indicate the change in the purchasing power of the monetary unit during the interim and thus the sum of money which will provide the recipient with the same purchasing power that was contemplated at the time of the original agreement. The proposal lacks scientific precision and at best gives a rough approximation of changes in the purchasing power of the monetary unit during periods of inflation and deflation.

See also: Index numbers and Mathematical economics