Definition of Nominal value

The distinction between real value and nominal value occurs in many fields. From a philosophical viewpoint, nominal value represents an accepted condition which is a goal or an approximation as opposed to the real value, which is always present. Often a "nominal" value is "de facto" rather than an exact, typical, or average measurement.

In economics, nominal value refers to an ecomomic value expressed in fixed nominal money terms (that is, in units of a currency) in a given year or series of years. By contrast, real value adjusts nominal value to remove effects of general price level price changes over time. For example, changes in the nominal value of some commodity bundle over time can happen because of a change in the quantities in the bundle or their associated prices, whereas changes in real values reflect only changes in quantities.