Vocabulary:

are referred to as – называются

in the long run – в долгосрочный период, т.е. достаточно длительный для того, чтобы фирма могла изменить все факторы производства

whether – ли (союз, который вводит придаточное предложение)

means – средство, средства (существительное, которое употребляется с глаголом в единственном и множественном числе)

by means of – при помощи, посредством

to mean (meant) – значить, иметь значение, означать

any – 1. какой-нибудь; сколько-нибудь (местоимение употребляется в вопросительных предложениях и после союза if); 2. никакой, нисколько (в отрицательных предложениях); 3. всякий, любой (в утвердительных предложениях)

steady a – устойчивый, постоянный, равномерный

inflationary spiral – инфляционная спираль (ситуация, когда темп инфляции постоянно и быстро повышается)

inflation rate – темп инфляции

hyperinflation n – гиперинфляция (обычно связывается с месячными показателями роста цен примерно на 50% за несколько месяцев подряд и с социальными потрясениями)

cause n – причина, основание

cause v (smth) – быть причиной, вызывать, причинять (что-л)

rather adv – довольно, несколько

explain v (smth to smb) – объяснять, давать объяснения; толковать, разъяснять (кому-л что-л)

account v (for smth) – 1. объяснять (что-л); 2. нести ответственность (за что-л); служить причиной (чего-л); 3. составлять, доходить (до какой-л величины)

accept v – принимать

occur v – случаться, происходить

ensure v – обеспечивать, гарантировать

incomes policy – политика доходов (ставит своей целью контроль над инфляцией путем сдерживания прироста зарплаты и цен)

argue v – приводить доводы, утверждать, доказывать, спорить

argument n – довод, доказательство, аргумент

speed v (smth) (sped, speeded) (up) – ускорять, увеличивать

anticipate v – ожидать, предвидеть

extent n – степень, мера

to some extent – до некоторой степени

adjustment n – регулирование, согласование

adjust v (smth to smth) – приспосабливать (что-л к чему-л); регулировать, устанавливать

indexation n – индексация

cope v (with smth) – справиться (с чем-л)

Exercise 1: Translate the following sentences into Russian using Vocabulary to Text 1:

1. With slow price and wage adjustment, an increase in money supply re­sults in a temporary output rise, but eventually it only causes higher prices.

2. Although inflation may not have been anticipated at first, people learn to adjust to it.

3. It is frequently argued that reducing the average level of inflation means reducing risks of making decisions and plans.

4. Governments and political parties usually have to decide whether they like the redistribution of income caused by inflation.

5. Governments think that tight monetary policies aimed at coping with inflation are desirable. Though these policies may mean higher unem­ployment and lower output.

6. Industrial economies have to make severe adjustments to cope with the rising energy scarcity.

7. Indexation means that the wages agreement will remain correct for any anticipated inflation that occurred over the life of the contract.

8. The extent of demand, budget constraints and other factors have been found to account for the particular level of government protection for a certain commodity over time.

Exercise 2: a) In Text 1 you’ve read several words and word combinations with the Russian equivalent «сдерживать». These are: to restrict, to hold back, to restrain, to keep under control. Translate the following sentences using ALL these word combinations and verbs:

1. При плановой экономике рост цен сдерживается прямым правительственным регулированием.

2. Инфляцию можно сдерживать при помощи жесткой политики доходов.

3. Некоторые экономисты считают, что жесткая политика доходов не может сдерживать инфляцию продолжительное время.

4. Задача правительства – сдержать рост темпов инфляции.

b) In English the Russian verb «принимать» has several equivalents, each of them having its peculiarities in usage and meaning. The most general is to receive. The verb to accept means принять с готовностью, с желанием. The verb to adopt is used when something usual is to be changed. Use these verbs in the following sentences:

1. The business community (деловые круги) expect the recently formed government to ... a new fiscal policy.

2. An individual firm has to ... prices existing in the market.

3. It is argued that the Russian Parliament has not ... a clear programme of land reform so far.

4. The manufacturers ... the new tax rates with satisfaction.

5. Although the economic study had been done at the request (просьба) of the government, the latter did not... the recommendations the econ­omists arrived at.

6. The Vice President was expected to ... additional responsibilities.

7. Households are known to ... incomes in the forms of wages, interest, rent, and social benefits.

8. Immigrants are ... mainly in the countries that need either unskilled (неквалифицированный) workers or workers with human capital un­available domestically.

Exercise 3: Change the given Russian words and word combinations into their English equivalents:

1. The economists discussed several reasons why past (политика доходов) had been unsuccessful.

2. State planning and central control of the economy often (означает) that the state has monopoly of important goods and services.

3. Until prices and wages (приспосабливаются) to the new (жесткой монетаристской политике), real aggregate demand will fall. Econo­mists (утверждают) that this situation can last for a period of years rather than months.

4. There are different policies aimed at (ускорение) the process of (регулирования) of prices and wages.

5. (Инфляционная спираль) is a situation when inflation gets worse and worse, because higher prices result in demands for higher wages, and higher wages increase costs and so (вызывают) higher prices.

6. Money is any generally accepted (средство) of payment.

7. Political figures and economists (высказываются) for restraining (рост денежной массы) and widely discuss the mechanisms through which this (происходит).

5. Prices of goods and resources are determined to (обеспечить) the pro­duction of the goods and services that society demands most.

6. Large industrialized countries (составляют) a large proportion of international trade.

Text 2: INFLATION

Inflation is generally defined as a persistent rise in the general price level with no corresponding rise in output, which leads to a corresponding fall in the purchasing power of money.

In this section we shall look briefly at the problems that inflation causes for business and consider whether there are any potential benefits for an enterprise from an inflationary period.

Inflation varies considerably in its extent and severity. Hence, the consequences for the business community differ according to circumstances. Mild inflation of a few per cent each year may pose few difficulties for business.

However, hyperinflation, which entails enormously high rates of inflation, can create almost insurmountable problems for the government, business, consumers and workers. In post-war Hungary, the cost of living was published each day and workers were paid daily so as to avoid the value of their earnings falling.

Businesses would have experienced great difficulty in costing and pricing their production while the incentive for people to save would have been removed.

Economists argue at length about the causes of, and «cures» for, inflation. They would, however, recognize that two general types of inflation exist:

• Demand-pull inflation

• Cost-push inflation

Demand-pull Inflation

Demand-pull inflation occurs when demand for a nation's goods and services outstrips that nation's ability to supply these goods and services. This causes prices to rise generally as a means of limiting demand to the available supply.

An alternative way that we can look at this type of inflation is to say that it occurs when injections exceed withdrawals and the economy is already stretched (i.e. little available labour or factory space) and there is little scope to increase further its level of activity.

Cost-push Inflation

Alternatively, inflation can be of the cost-push variety. This takes place when firms face increasing costs. This could be caused by an increase in wages, the rising costs of imported raw materials and components or companies pushing up prices in order to improve their profit margins.