Time Value of Money: A Case Study
Article from: TDM 6 (2007), in Compensation and Damages in International Investment Arbitration
Background
In this article, we wish to examine the possible methods of adjusting the value of damages to reflect current day monetary values. The main question is: What reasonable rate of interest accruing from the date of loss needs to be applied to account for the passage of time? Thus the principal aims of the article are: (1) to identify standards from the fields of economics and finance that may be employed to achieve this purpose; (2) to recommend the most appropriate financial basis on which the actualization may be carried out; and (3) to formulate arguments to support the ...