Nominalism

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DEFINITION of 'Nominalism'

The principle of keeping the amount of a debt obligation fixed despite fluctuations in the money's purchasing power or exchange rate.

INVESTOPEDIA EXPLAINS 'Nominalism'

Nominalism puts the risk of depreciation on the creditor and the risk of appreciation on the debtor.

RELATED TERMS
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  2. Nominal

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  4. Creditor

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  5. Debtor

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    1. The use of various financial instruments or borrowed capital, ...
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