The Economic Times

Financial word of the day: Intertemporalization meaning, usage, and why it suddenly matters more than ever

Financial word of the day: Intertemporalization explains how economic and investment decisions are made across time, not just today. It shows why future money is worth less than present money and how interest rates, inflation, and risk shape that gap. When rates rise, long-term returns lose value and investors prefer near-term cash flows. When rates fall, patience is rewarded. This time-based logic now drives markets, spending behavior, and capital allocation.