Контрольная CAN INFLATION BE BENEFICIAL
CAN INFLATION BE BENEFICIAL
We would be simplifying the impact of inflation on business if we suggested that all effects were unfavorable. There is a school of thought, which argues that a low and stable rate of increase in the price level can be beneficial. It believes that a steady rise in money profits produces favorable expectations and induces investment as firms seek to expand. This action expands the economy as a whole. Paradoxically, inflation can also reduce the costs' of businesses in the short run. Many enterprises incur costs, which are fixed for some period of time - for example, the rent of a factory may be fixed at a particular figure for a few years. At a time when the selling price of the firm's product, and hence its sales income, is rising this cost will be falling in real terms and thus stimulating the business.
There is a further argument that firms may be persuaded to borrow heavily in a period of inflation since the burden of repaying loans is reduced by inflation. If inflation is running annually at 10 per cent, for example, then the real value of the repayments of the loan will fall by approximately that amount each year. This may serve to encourage investment which, since it is an injection into the circular flow, will promote the level of activity. However, in these circumstances interest rates are likely to be high.
Government will accept that low rates of inflation are likely to exist in many economies. Inflation rates of 5 per cent or below are not considered to be too great a problem, especially if competitor nations are suffering similar rates.
In spite of the above, the conclusion must be drawn that inflation is, in general, harmful to business and its environment. Indeed, many economists would contend that inflation is the fundamental evil as its presence leads to lack of competitiveness and therefore relatively high unemployment and low rates of growth. This viewpoint has gained in credence in government circles over the last few years. It is for this reason that its control has been a major objective of government economic policy throughout the 1980s and early 1990s.
VOCABULARY NOTES
beneficial - выгодный, приносящий доход
unfavorable {ant Favourable} - неблагоприятный
there is a school of thought, which argues that - существует мнение, что...
and induces investment as firms seek to expand - и способствует росту капиталовложений, так как фирмы (предприятия) расширяются
in the short run - очень быстро
incur costs, which are fixed for some period of time - несут расходы, которые в течение какого-то периода являются неизменными
a further argument - еще один аргумент
to borrow heavily - брать взаймы большие суммы
repaying loans - выплата займов
to contend - настаивать, утверждать
this viewpoint has gained in credence - эта точка зрения получила большое распространение
a major objective - главная цель
Assignments
I. Suggest the Russian equivalents
a steady rise in money profits produces favourable expectations
this cost will be falling in real terms
this viewpoint has gained in credence in government circles
II. Replace the parts in italics by synonyms
a steady rise in money profits induces investment as firms seek to expand
rates are not considered to be
the conclusion must be drawn
III. Fill in the gaps with the words and expressions from the text
1. A steady rise in money profits produces _ and induces _as firms seek to expand.
2. There is a _ argument that firms may be to borrow heavily in a period of inflation.
3. Many economists would _ that inflation is the fundamental _.
4. This viewpoint has _ in government circles over the last few years.
IV. Find in the text English equivalents for the following
стимулировать капиталовложения
устанавливать цену
брать взаймы крупные суммы
настаивать, утверждать
страдать от подобного уровня
Assignments to the whole text
I. Increase your vocabulary
a) Find in the text all word-combinations with the verb "to experience" and translate them. Think of your own examples with these combinations. What other word-combinations with this verb do you know? Give examples.
b) Find in the text the words expressing the English for:
("понижаться)" and ("повышаться)";
("привести") and ("вызвать").
Write out the word-combinations with them and use these in your own sentences. Give synonyms to each word-combination you found in the text. What other words expressing the same meaning do you know?
II. Find English explanations or paraphrase
the economy is stretched
fiscal drag
state benefits
not index-linked wages
foreign currency;
selling essential items
borrowing funds
a bout of inflation
wage-price spiral
a school of thought
money profits
Данная контрольная работа имеет средний уровень сложности. Контрольная будет интересна тем, кто изучает экономику в вузах. Чтобы выполнить контрольную работу, необходимо повторить английскую экономическую лексику.
