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CONV_INFLATION

The CONV_INFLATION event requests an inflation correction for a specific investment option. This event ensures that inflation is properly administered before profits are measured or distributed. It directly influences the ideal valuation of the option.

Fields

Field Type Description Value
Type string Identifies the event CONV_INFLATION
Timestamp DateTime (ISO-8601) The timestamp of the event
Option string The identifier for the investment option
Invested_amount decimal(20,4) The total invested amount in the investment fund
Inflation_factor decimal(20,4) The factor by which monetary amounts should be multiplied

Inflation Factor

The inflation factor is administered as a multiplier rather than a percentage. This approach keeps calculation logic simple and consistent. For example, a 2% inflation is represented by a factor of 1.02.

Purpose

This event allows the system to adjust valuations for inflation, ensuring fair and accurate profit calculations.


By J.W. Morsink