Monthly Bulletin July 2009 - Banque de France
Monthly Bulletin July 2009 - Banque de France
Monthly Bulletin July 2009 - Banque de France
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General government: a sector <strong>de</strong>fined in the ESA 95 as comprising resi<strong>de</strong>nt entities that are<br />
engaged primarily in the production of non-market goods and services inten<strong>de</strong>d for individual and<br />
collective consumption and/or in the redistribution of national income and wealth. Inclu<strong>de</strong>d are<br />
central, regional and local government authorities as well as social security funds. Exclu<strong>de</strong>d are<br />
government-owned entities that conduct commercial operations, such as public enterprises.<br />
Gross domestic product (GDP): the value of an economy’s total output of goods and services less<br />
intermediate consumption, plus net taxes on products and imports. GDP can be broken down by<br />
output, expenditure or income components. The main expenditure aggregates that make up GDP are<br />
household final consumption, government final consumption, gross fixed capital formation, changes<br />
in inventories, and imports and exports of goods and services (including intra-euro area tra<strong>de</strong>).<br />
Harmonised In<strong>de</strong>x of Consumer Prices ( HICP): a measure of the <strong>de</strong>velopment of consumer<br />
prices that is compiled by Eurostat and harmonised for all EU Member States.<br />
Hourly labour cost in<strong>de</strong>x: a measure of labour costs, including gross wages and salaries (in<br />
cash and in kind, including bonuses) and other labour costs (employers’ social contributions plus<br />
employment-related taxes paid by the employer minus subsidies received by the employer), per<br />
hour actually worked (including overtime).<br />
Implied volatility: the expected volatility (i.e. standard <strong>de</strong>viation) in the rates of change of the<br />
price of an asset (e.g. a share or a bond). It can be <strong>de</strong>rived from the asset’s price, maturity date and<br />
exercise price of its options, as well as from a riskless rate of return, using an option pricing mo<strong>de</strong>l<br />
such as the Black-Scholes mo<strong>de</strong>l.<br />
In<strong>de</strong>x of negotiated wages: a measure of the direct outcome of collective bargaining in terms of<br />
basic pay (i.e. excluding bonuses) at the euro area level. It refers to the implied average change in<br />
monthly wages and salaries.<br />
Industrial producer prices: factory-gate prices (transportation costs are not inclu<strong>de</strong>d) of all<br />
products sold by industry excluding construction on the domestic markets of the euro area countries,<br />
excluding imports.<br />
Industrial production: the gross value ad<strong>de</strong>d created by industry at constant prices.<br />
Inflation: an increase in the general price level, e.g. in the consumer price in<strong>de</strong>x.<br />
Inflation-in<strong>de</strong>xed government bonds: <strong>de</strong>bt securities issued by the general government, the<br />
coupon payments and principal of which are linked to a specific consumer price in<strong>de</strong>x.<br />
International investment position (i.i.p.): the value and composition of an economy’s outstanding<br />
net financial claims on (or financial liabilities to) the rest of the world.<br />
International reserves: external assets readily available to and controlled by monetary authorities<br />
for directly financing or regulating the magnitu<strong>de</strong> of payments imbalances through intervention<br />
in exchange markets. The international reserves of the euro area comprise non-euro <strong>de</strong>nominated<br />
claims on non-euro area resi<strong>de</strong>nts, gold, special drawing rights (SDRs) and the reserve positions in<br />
the IMF which are held by the Eurosystem.<br />
XIV<br />
ECB<br />
<strong>Monthly</strong> <strong>Bulletin</strong><br />
<strong>July</strong> <strong>2009</strong>