American Financial Unit (AFU) Live Rate Tracker

What is the American Financial Unit (AFU)?

The AFU (American Financial Unit) is an economic index designed to provide a stable measure of value over time by automatically adjusting for inflation. We calibrated the index to a value of USD$100.00 on January 1, 2000, although our historical data extends back to 1913.

The AFU index has reflected various periods of economic change throughout the 20th century. For instance, the index value was $10.77 in 1920, $10.52 in 1945, $22.18 in 1970, and $74.68 in 1990.

The Chilean Model: A Unit of Economic Stability

The AFU is directly inspired by a successful real-world model: the Unidad de Fomento (UF), or "Unit of Development," used in Chile since 1967.

The concept for the UF emerged from academic work conducted at the University of Chicago's Department of Economics in the 1950s and 60s (often referred to as the "Chicago Boys"). The goal was to create a mechanism that allowed long-term contracts to exist safely in an economy plagued by high inflation.

Practical Utility: Inflation-Proofing Your Finances

The AFU automatically bakes inflation into the principal value. This allows people to focus on real economic changes, not inflationary noise. Examples of its utility include:

• Salary Negotiation: If a salary is negotiated in AFU, the annual cost-of-living adjustment (COLA) is handled automatically. Any raise received is a genuine reward for performance, not just a catch-up to inflation.
• Loans and Contracts: Denominating mortgages, leases, and long-term contracts in AFU ensures the real value of the principal remains stable for both parties, leading to more fair and predictable agreements over decades.

Last 30 Days of AFU Rates

Rates are updated daily via scheduled CPI fetching.