NOMISMA

Principal

元本 / principal — Measuring

The original amount of money deposited or borrowed. The core amount, excluding interest and fees.

Italy — The public mounts / Siena
Italy The public mounts / Siena

Interest accrues on the principal. Fees are deducted from the principal. Inflation erodes the value of the principal. By observing these three movements separately, one can determine whether the amount has increased or decreased.