index-linked
index-linked
Pronunciation
PA: /ˈɪndɛksˌlɪŋkt/
in-: /ˈɪn/ (unstressed, short "i" sound, "n" sound)
dex-: /dɛks/ (short "e" sound, "ks" sound)
linked: /lɪŋkt/ (short "i" sound, "ng" sound as in "sing", "k" sound, "t" sound)
The IPA phonetic spelling for "societal" is /səˈsaɪə.təl/.
Here's a breakdown of the sounds by syllable:
so: /sə/ - This syllable starts with an "s" sound, followed by a schwa sound (the "uh" sound in "about").
ci: /ˈsaɪ/ - This syllable begins with an "s" sound, followed by the diphthong /aɪ/ (as in "eye"). The stress falls on this syllable.
e: /ə/ - This is a schwa sound.
tal: /təl/ - This syllable starts with a "t" sound, followed by a schwa sound and ends with an "l" sound.
Word Form Variations
Adjective: index-linked (e.g., "an index-linked bond")
Adverbial Phrase: indexed to (e.g., "a salary indexed to inflation") - While not a direct variation of "index-linked," it conveys a similar meaning.
Definitions, Synonyms, and Antonyms
Adjective
Definition 1: (Finance) Describing a financial asset, payment, or value that is adjusted periodically in accordance with changes in a specified economic index (such as the consumer price index or a stock market index) to protect against inflation or reflect market performance.
Synonyms: inflation-proof, inflation-indexed, price-linked, inflation-adjusted, market-linked
Antonyms: fixed-rate, unindexed, non-adjustable
Definition 2: Pertaining to something whose value or quantity is directly tied to and fluctuates with another related measure or benchmark.
Synonyms: correlated, connected, tied, pegged, dependent on
Antonyms: independent, unassociated, unrelated, autonomous
Examples of Use
Books & Academic Publications:
"The government introduced index-linked bonds as a way to protect investors from the corrosive effects of inflation, a concept explored in detail in financial economics textbooks." (General knowledge of finance texts)
"Chapter 7 discusses the design of pension systems, noting that 'Over half of OECD countries protect pensioners fully from inflation trends over time. These countries index pensions to prices or to prices plus (part of) real-wage growth if positive,' essentially describing index-linked pensions." (OECD's "Pensions at a Glance 2023")
"In the study of labor economics, discussions often revolve around wage agreements, sometimes including index-linked clauses to ensure purchasing power is maintained amidst rising living costs." (Observation of economics literature)
Newspapers and Online Publications:
"AXA Investment Managers (AXA IM) has unveiled a pair of actively managed fixed income ETFs – one covering global inflation-linked bonds, the other short-dated investment grade debt." ("AXA launches actively managed global inflation-linked bond ETF," ETF Stream, July 3, 2025)
"The Bank of England regularly publishes details about Index-Linked Treasury Stock, which are gilts issued by the UK Government that pay out twice a year, with the amount indexed to the Retail Prices Index." ("Index Linked Treasury Stock," Bank of England, December 18, 2024)
"Financial analysts often advise on the benefits of diversifying portfolios with index-linked investments, especially during periods of high inflation." (Common financial news and advice articles)
Entertainment Mediums and Platforms:
While "index-linked" is a technical financial term and less likely to appear explicitly in fictional entertainment, its underlying concepts might be subtly present or discussed in specific genres:
In a financial thriller or drama: A character might be seen discussing their index-linked investments, such as "My pension is index-linked, so I'm not too worried about the recent jump in inflation." (Fictional dialogue, reflecting realistic financial concerns)
Documentaries about economics or personal finance: A segment explaining how different financial instruments work would almost certainly use the term when discussing inflation protection. "This segment explains how index-linked products offer a hedge against rising prices, a crucial consideration for long-term financial planning." (Typical commentary in a financial documentary)
General Public Discourse:
"During discussions about cost of living and pensions, you often hear calls for index-linked benefits to ensure retirees don't fall behind as prices rise." (Common public debate, particularly around government benefits and pensions)
"People with index-linked mortgages might see their payments adjust up or down depending on how the chosen index performs, which can be a double-edged sword." (Informal conversations about personal finance, though less common than "index-linked bonds" or "pensions")
"When debating public sector pay, the concept of index-linked salary increases often comes up, where wages would automatically rise with inflation." (Political discussions and union negotiations)
10 Famous Quotes Using Index-linked
"Inflation is taxation without legislation." (Milton Friedman) While not using "index-linked," this quote highlights the problem that index-linked instruments aim to solve – the erosion of purchasing power due to inflation.
"The CPI is the closest thing to a national report card we have on inflation. And it shows that inflation is eating away at the purchasing power of your dollar." (Ron Kind) This quote emphasizes the role of an index (CPI) in tracking inflation, which directly relates to the concept of index-linked adjustments.
"Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it." (Albert Einstein) Metaphorically, an index-linked return can be seen as a form of "compounding" against inflation, protecting the real value over time.
"Our pension plans are designed to be index-linked to the cost of living, ensuring our retirees maintain their purchasing power." (Quote from a hypothetical union negotiation or government statement regarding pension benefits, common in public discourse)
"The debate over public sector pay often revolves around whether wages should be index-linked to inflation, a common demand from unions." (Observation of economic and labor news, not a direct quote from one famous person)
"In a world of volatile markets, index-linked bonds offer a refuge for investors seeking to preserve capital." (Common sentiment expressed by financial advisors and in investment literature, not a specific famous quote.)
"We looked at various financial instruments, and the index-linked gilts seemed to be the most prudent choice for long-term capital preservation against inflationary pressures." (From a financial commentary or investment strategy discussion, representing a common use of the term.)
"Governments issue index-linked debt to signal their commitment to controlling inflation, as it means their repayments will increase if inflation rises." (Analysis from an economics textbook or financial journal)
"The new salary structure includes an index-linked component, designed to automatically adjust compensation based on the national inflation rate." (From a company HR policy document or internal announcement, illustrating practical application.)
"The value of true knowledge is index-linked to its utility in solving real-world problems." (Original metaphorical quote)
Etymology
"Index":
Origin: The word "index" comes from the Latin word index, which meant "a discoverer," "informer," "pointer," or specifically, the "forefinger." It refers to something that points out, indicates, or lists information.
Evolution to Financial Meaning: Over time, the meaning broadened. In the world of finance and economics, an "index" became a single number that measures how a group of related data points changes over time. Think of it like a pointer or indicator for how a certain market or cost of living is moving. For example, the Consumer Price Index (CPI) "points out" how the general level of prices for consumer goods and services is changing.
First Known Use (Financial Context): While the general concept of using "index numbers" for economic data goes back further, their widespread use in modern financial instruments, leading to terms like "index-linked," became more prominent. The Oxford English Dictionary (OED) notes the first known use of "index" in a financial context (like a stock market index) in the late 19th and early 20th centuries.
"Linked":
Origin: This word comes from Old English, meaning to connect or join together.
Meaning in "index-linked": In "index-linked," it simply means that something is connected or tied to the index.
Putting it Together: "Index-Linked"
So, when you combine "index" (meaning a measure or indicator) and "linked" (meaning connected), "index-linked" literally means "connected to an index."
First Known Use and Meaning:
The term "index-linked" itself, as an adjective, seems to have emerged more recently, primarily in the context of modern financial products and economic policies.
The Oxford English Dictionary suggests the earliest known use of the adjective "index-linked" is around the 1970s, with a specific mention from the Daily Telegraph in London in 1974 for the verb "index-link."
Its first meaning was exactly as we understand it today: referring to something (like a financial asset, payment, or salary) whose value or amount is directly tied to, and adjusted according to, changes in a specific economic index. This was often introduced to protect against inflation, ensuring that the real value of money or payments didn't get eaten away by rising prices. For example, an "index-linked pension" would automatically increase as the cost of living index (like CPI) went up.
While the concept of adjusting payments based on changing prices goes back much further (for instance, Massachusetts issued inflation-indexed bonds during the American Revolutionary War in 1780), the specific term "index-linked" gained prominence in the latter half of the 20th century as modern governments and financial institutions began issuing these types of securities and policies more widely, particularly in response to high inflation periods. The UK, for instance, introduced its first modern index-linked gilts (government bonds) in 1981.
Phrases + Idioms Containing Index-linked
Index-linked bond: A common financial instrument where the principal and/or interest payments are tied to an inflation index.
Index-linked pension: A retirement income that automatically adjusts with inflation or a specific cost-of-living index.
Index-linked salary: A wage or salary that automatically increases according to a specific economic index, often the Consumer Price Index.
Index-linked mortgage: A mortgage whose interest rate or principal payments are tied to an external index.
Index-linked securities: A broader term for financial assets whose value is tied to an index.
"Tied to the benchmark": (Idiom using a synonym for "index") Meaning something is directly connected to a standard measure, similar to being index-linked.
"Hedging against inflation": (Phrase describing the purpose of index-linked instruments) Taking action to protect oneself financially from the effects of rising prices.
"Inflation-proofed": (Synonymous phrase) Made secure against the effects of inflation, often through index-linking.
"Adjusted for cost of living": (Phrase describing the effect of index-linking) Payments or values are modified to reflect changes in the expenses of daily life.
"Playing by the market's rules": (Metaphorical idiom) Acting in accordance with market movements, similar to how an index-linked investment responds to market indices.
Vocabulary-Based Stories from SEA
Source Information
Definition of index-linked from The Academic Glossary at Self Exploration Academy, a Urikville Press Publication. © All rights reserved.
