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REAL: The value after adjusting for inflation. Pointy-headed economist are frequently interested in comparing stuff (production, income, or whatever) in one year with similar stuff in another year. However, in that inflation can distort such a comparison, it's best made using a fixed set of prices that eliminate inflationary changes. In practice, this is accomplished by using the prices in an arbitrary "base year." Once the price differences have been eliminated, the numbers are said to be measured in real dollars.

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EXCESS RESERVES

The reserves (vault cash and Federal Reserve deposits) that banks have over and above what they are required by government to keep to back up deposits. The primary use of excess reserves, also termed free reserves, is for loans to consumers and businesses. Because reserves do not generate interest, revenue, or profit, banks are inclined to keep as few excess reserves as possible.

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RED AGGRESSERINE
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Today, you are likely to spend a great deal of time strolling through a department store looking to buy either a toaster oven that has convection cooking or a birthday gift for your mother. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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The wealthy industrialist, Andrew Carnegie, was once removed from a London tram because he lacked the money needed for the fare.
"Try not to become a man of success but rather to become a man of value. "

-- Albert Einstein

JIE
Journal of Industrial Economics
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