Panel Power 62

Part 2. BUILDING A FINANCIAL SYSTEM: Creative Writing and Report Making

Text 1. Building a financial system 68

Text 2. Approaches to banking reform 69

Box 1. Russia's radical banking reform 71

Text 3. Where government should lead… 72

Text 4. …и когда правительство должно оставаться в стороне? 76

Text 5. Developing capital markets 78

Text 6. Роль небанковских финансовых организаций 84

Text 7. Задачи на будущее 86

Practicing Writing Skills 87

Mastering the Written Word 87

Text 8. New tools for assessing financial system soundness 88

So, You Need to Write a Speech 90

Text 9. Banking reform in transition economies 92

Select Your Quote with Care 95

Guidelines to Footnoting 96

Text 10. Money laundering: muddying the macroeconomy 97

Report-Writing 100

Basic Principles of the Research Report 100

Major Steps to Write a Research Report 100

Language and Style Checklist 101

Text 11. International accounting standards for Russian banks 102

Round-Table Discussion 104

Glossary I

Glossary II

Supplement I

Supplement II

Part I

Transition economies: Analytical Reading, Writing and Discussion

TEXT 1

Task 1. Skimming for main ideas

Skimming means reading a text without attention to details in order to get an overview of the organization of the text and its main ideas. This will include attention to title, headings, introduction and conclusion, as well as the beginnings and ends of paragraphs. Skimming the text is an excellent pre-reading habit. When you do a close reading of the text after skimming it, you will find that you read more fluently and accurately.

 Skim through Text 1 and write in the number of the paragraph that deals with each of the following topics:

- a Importance of stabilization for transition

- b Differences between countries in initial condition

- c Necessary steps for improving economic performance

- d Important parallels between transition countries

- e Importance of liberalization

L iberalization, Stabilization and Growth

cross the transition economies, extensive liberalization and determined stabilization have both been vital for improving economic performance. Liberalization involves freeing prices, trade, and entry from state controls; stabilization means reducing inflation and containing domestic and external imbalances. The two are intricately linked and can and should be initiated early. In the longer term, institutional reforms — establishing clear property rights, sound legal and financial infrastructure, and effective government — will be needed to make markets work efficiently and support growth. But liberalization and stabilization are essential first steps, and they can achieve a great deal even when other key features of an effective market are lacking.

2. Why is liberalization so important? It decentralizes production and trading decisions to enterprises and households and directly addresses the two fundamental weaknesses of central planning: poor incentives and poor information. Liberalization exposes firms to customer demand, the profit motive, and competition and it lets relative prices adjust in line with true scarcities. Liberalized markets process information better than central planners, and when goods and services are traded freely, the price mechanism — Adam Smith's invisible hand — matches demand and supply. In most cases the outcome is efficient. Combined with supporting institutions, competitive markets unleash powerful processes to force technological and organizational change. Whereas planned economies experienced low or negative overall productivity growth despite high capital accumulation, at least half of output growth in advanced market economies since World War II has resulted from productivity gains. Creating markets is an investment in a more dynamic system of economic coordination that fosters long-run productivity and output growth. Finally, liberalization, by depoliticizing resource allocation, helps governments cut subsidies to firms and thus facilitates economic stabilization.

3. Stabilization policy is vital for transition because macroeconomic imbalance denies countries the gains of market reforms. Evidence from a wide range of market economies shows that once annual inflation rises above a threshold level around 40 percent, growth deteriorates dramatically. High inflation obscures relative price incentives and creates uncertainty, inhibiting saving and investment. Therefore, price stabilization always complements liberalization as a basis for growth; as shown below, some transition countries have liberalized faster than others, but none has registered sustained growth without containing inflation at moderate levels.

4. There are some important parallels between Asian and European transition economies in the relationships between liberalization, stabilization, and growth. In all regions growth has largely resulted from the lifting of restrictions on new entry and a surge of previously repressed activities, especially services and export industries (and agriculture in Asia). Freeing prices and trade, reducing subsidies, and containing credit can also revitalize growth in previously dominant sectors, by increasing the competitive and financial pressure on firms to restructure.

5. However, there are also major differences between countries — in initial conditions, in approaches to macroeconomic reforms, and in outcomes. In China the initial economic structure combined with strong, macroeconomic control has so far allowed large growth gains from partial liberalization to translate into high saving and a rapid buildup of financial assets by households. This has helped cushion a state sector that remains a drag on the economy — even though its efficiency may be improving and its relative size is shrinking — and has underwritten the reform process itself. Gradual, partial reforms were not an option for most CEE countries and NIS*. There only broad-based liberalization has allowed governments to cut their links with firms enough to bring inflation down to levels that would permit economic recovery. These countries all suffered a large decline at first. But those that liberalized early and comprehensively were able to stabilize the economy sooner and enjoy an earlier, stronger resumption of growth.

© World Development Report

*

see SUPPLEMENT II.

Task 2. Scanning through the text

Scanning involves looking quickly through a text to find a specific word or piece of information. There are often times when it is necessary to do this, such as when studying for a test or writing a paper, so it is a useful skill to practice.

 Scan the text to find information on the following aspects:

a) Certain economic measures indispensable for liberalization and stabilization;

b) A threshold level of annual inflation above which growth deteriorates dramatically;

c) Important parallels between Asian & European transition economies;

d) Major differences between transition economies.

Task 3. Building vocabulary

1  Before you read the text, study Key Words and Word-Combinations and give Russian equivalents for them.

KEY WORDS AND WORD-COMBINATIONS

extensive / broad-based liberalization

determined stabilization

to reduce inflation / to curb inflation / to contain inflation / to bring down inflation

to contain domestic and external imbalances

institutional reforms

to establish clear property rights

to establish sound legal and financial infrastructure

to establish effective government

to decentralize production and trading decisions to enterprises and households

to address the two fundamental weaknesses of central planning

to let relative prices adjust in line with true scarcities

to foster long-run productivity and output growth

to facilitate economic stabilization

to deteriorate growth dramatically

threshold level

to obscure relative price incentives

to inhibit saving and investment

to lift restrictions

to complement liberalization by price stabilization

to register sustained growth

to revitalize growth

to increase the competitive and financial pressure on firms

initial conditions

to translate into high saving and a rapid build up of financial assets

to underwrite the reform process

to cushion a state sector

economic recovery

to enjoy an earlier resumption of growth

2  The vocabulary exercises below will help you to master the key vocabulary. It will provide you with the required vocabulary to speak on the problems under consideration.

A. Find in the text English equivalents for the following word-combinations.

Последовательная стабилизация; институциональные преобразования; способствовать стабилизации экономики; широкомасштабная либерализация; реорганизовывать государственный аппарат; устанавливать четкие права собственности; искажать относительные ценовые стимулы; сопровождать либерализацию стабилизацией цен; резко замедлять развитие экономики; поддерживать процесс реформ; устанавливать оптимальную правовую и финансовую инфраструктуру; сокращать инфляцию; пороговый уровень; обуздать инфляцию; устранять диспропорции в народном хозяйстве и во внешнеэкономической сфере; предоставлять предприятиям и населению право самостоятельно принимать экономические решения; оживление экономики; обратиться к двум фундаментальным проблемам централизованной экономики; способствовать устойчивому росту производительности труда и объёма производства; мешать накоплению сбережений и инвестированию; достигать устойчивого роста; способствовать возобновлению экономического роста; привести к увеличению сбережений и быстрому наращиванию финансовых средств; ставить предприятия в условия конкуренции и жестких бюджетных ограничений.

B. Find the following word-combinations in Text 1 and think of corresponding Russian equivalents.

Across the transition economies; to improve economic performance; to free prices and trade; to free entry from state controls; to be intricately linked; to make markets work efficiently; poor incentives; liberalized markets process information better; the price mechanism matches demand and supply; to experience low or negative overall productivity growth; advanced market economies; creating markets is an investment in a more dynamic system of economic coordination; to cut subsidies to firms; to depoliticize resource allocation; macroeconomic imbalance denies countries the gains of market reforms; lifting restriction on new entry; a surge of previously repressed activities, especially services and export industries; to reduce subsidies; to contain credit; to let relative prices adjust in line with true scarcities; combined with supporting institutions, competitive markets unleash powerful processes.

3  Word Study

Analysing Economic Situation / Describing Trends

 Upward Trend	 Downward Trend	 Static Trend	Degree of Change
to to increase to go up to raise smth. to rise to step up to speed up to accelerate to soar to skyrocket	to decrease to decline to go down to fall to slow down to come down to drop to sink to plummet to plunge	to maintain to keep up to ensure to secure to sustain	considerable – considerably substantial – substantially significant – significantly steep – steeply steady – steadily moderate – moderately slight – slightly negligible – negligibly

4  In Text 1 the author uses the following verbs and modifiers. Sort out the given words under the suggested titles.

to result from/in to lift sound essential

to experience to process intricate direct

to sustain to accumulate to force to foster to facilitate to inhibit to curb to improve to deteriorate to cut to involve to achieve

to adjust to cushion to reduce to enjoy to restrain to remain to revitalize to stabilize to shrink to establish to support to address

Extensive poor dramatic powerful rapid fast vast previous huge initial gradual partial broad comprehensive strong relative vital

5  Give Passive Participles of the above given verbs und translate them into Russian.

6  Give adverbs corresponding to the above given adjectives and provide collocations with them.

7  Describe the trends in transition economies concerning the following economic parameters: production, productivity growth, subsidies to firms, technological changes, stabilization, annual inflation, credit, pressure on firms to restructure, household saving.

Task 4. Discussing the content

1. Why should liberalization and stabilization be initiated early?

2. What do institutional reforms involve?

3. Why is it necessary to decentralise production and trading decisions to enterprises and households?

4. What is the mechanism of adjusting relative prices with true scarcities?

5. How do competitive markets force technological and organizational change?

6. Why does macroeconomic imbalance deny countries the gains of market reforms?

7. Why does high inflation create uncertainty, inhibiting saving and investment?

8. What was the main prerequisite for growth in all transition economies?

9. What is meant by previously dominant sectors?

10. What are the major differences between transition countries. Provide the examples.

11. Why does the state sector remain a drag on the economy in some countries?

12. What was the option for most CEE and NIS countries? To what effect?

Task 5. Analyzing Text Structure

Coherence in the Text

Coherence in a paragraph depends basically on an orderly arrangement of the ideas. It depends on: 1) repetition of key terms 2) parallelism 3) pronoun reference 4) the use of explicit connecting links between sentences.

 Repetition of Key Terms and Phrases provides an effective way to connect sentences within a paragraph. The deliberate repetition of words that carry the basic meaning emphasizes them in the reader’s mind.

 Parallelism. A second way to ensure continuity within a paragraph is to phrase important ideas in the same grammatical structures which makes writing concise, emphatic, and easy to follow.

 Pronoun Reference. Another way to establish continuity between sentences is through the use of pronouns. Using a pronoun in one sentence to repeat a noun in a previous sentence provides an effective link between these paragraphs.

 Connecting Words and Phrases act as bridges between the sentences. Although overuse of such expressions can make writing awkward and mechanical, used moderately and with variety they can improve paragraph coherence. Some words and phrases commonly used to provide connection between sentences, or within the sentence, are listed below.

RELATIONSHIP	EXPRESSION
Addition, sequence	In addition, moreover, furthermore, first, second, also, next
Contrast	However, nevertheless, on the other hand, yet, still, conversely, on the contrary, in contrast to, unlike, but
Similarity	Similarly, likewise, in the same way, in a similar case, equally
Illustration	For example, as an illustration, for instance, as an example, consider as an illustration
Restatement, clarification	In other words, that is, in particular, in effect, to recap
Concession	Though, although, even though, granted that, admittedly, given that, on condition that
Emphasis	Most important, indeed, in fact, certainly, truly, even more important, no doubt
Result	Therefore, thus, consequently, as a consequence, hence, as a result
Summation	Finally, to sum up, in conclusion, in short, in sum, summing it up

1.  Identify the key terms and their derivatives in each paragraph and trace them throught the text.

2.  Analyse paragraph 2 and indicate which means of coherence mentioned above are

used in it.

3.  In paragraph 3 find the referent for pronoun “none”.

4.  Indicate parallel structure in paragraph 5.

5.  What does pronoun “this” in paragraph 5 stand for?

6.  Which connecting words and phrases are used by the author between and within

paragraphs?

7.  Look through the text in box 1 and sort out the connectors in it under the headings of

the above given classification.

BOX 1

China's dual-track price reforms

China's price reforms began in late 1978, implementing a dual-track system in which the share of production subject to state procurement continuously declined, and more and more prices were subjected to varying degrees of market guidance. The reforms began in agriculture and spread slowly, first to consumer goods and later to intermediate goods industries. In each case a free market developed in parallel with the controlled market, where state supply was kept unchanged at the (lower) plan price. Supply in the free market track grew rapidly, so its share in total output rose steadily. Meanwhile the planned price was raised incrementally until it approached the market price. By the end of 1994 this dual-track system had led to the decontrol of more than 90 percent of retail prices and between 80 and 90 percent of agricultural and intermediate product prices, all of which are now market determined. Only a few prices remain fixed or negotiable within a band set by the state.

Although liberalization remained incomplete, dual-track price reforms did improve efficiency, because the price of the marginal unit reflected economic cost and correctly signaled relative scarcity, and because the share of sales at planned prices declined over time. Also, the eventual full liberalization of the small share of output remaining subject to controls proceeded smoothly. Less than 20 percent of food products were still sold at fixed official prices when the last food price controls were removed in 1992, so the final convergence of the two tracks caused minimal disruption to the economy as a whole. But dual-track reforms also were costly to implement — a vast number of people were needed, for example, to administer the rationing and distribution system associated with dual food prices — and required strict enforcement to limit the diversion of price-controlled products to the free market and to rein in corruption, with severe penalties for noncompliance.

Task 6. Summarizing

Being able to write a summary is an important skill. It shows that you have understood what is most important in a text. A summary is different from a paraphrase. When you paraphrase, you look at a small part of the text and rewrite it in your own words. When you summarize, you look at a whole text and reduce it to a few sentences ( still using your own words, not the author’s ).

The first sentence of a summary should express the overall message of the text. The remaining sentences should present the most important ideas in the text. A good summary need not include details or supporting evidence for the main ideas.

1  Sum up the main points presented in Text 1. Write the plan of the text in the form of statements.

2  Develop your plan into a summary. Here are some prompts for you:

Liberalization and stabilization are essential first steps for transition economies since they …,

Liberalization is important because it helps to …,

Price stabilization together with liberalization is vital for transition because…,

There exist important similarities between transition economies such as…,

Major differences between countries — in initial conditions and approaches to macroeconomic reforms — led to different outcomes. Thus, for example… .

As s result… .

3  Make your summary coherent by a sparing use of connectors.

4  Look through your summary. Find the least important sentences and delete them. Write out the remaining ones to produce a well-written, clear, and concise summary.

TEXT 2

Task 1. Skimming for main ideas

 Skim through Text 2 and identify the main directions of analysis undertaken in the text.

Determinants of Growth in Transition Countries

Perhaps the most useful criterion for assessing success in the transition is the sustainable recovery of output, which can be achieved only by controlling inflation and liberalizing markets.

ransition is a dynamic histori­cal process, imposing change on almost every element of society. Assessing the progress of a great number of countries during transition is a complex undertaking in any area, including economics. Success in recovering output, however, readily suggests itself as a useful unifying theme for economic assessment, not least because of the importance policy-makers in transition economies attach to output growth and its immediacy for the welfare of everyone in those countries. Based on extensive econometric analysis, this arti­cle identifies factors that have inhibited or encouraged the expansion of output and points out several lessons for achieving con­sistent and sustainable economic growth.

What does transition mean?

2. In a broad sense, transition implies

• liberalizing economic activity, prices, and market operations, along with reallocat­ing resources to their most efficient use;

• developing indirect, market-oriented instruments for macroeconomic stabilization;

• achieving effective enterprise manage­ment and economic efficiency, usually through privatization;

• imposing hard budget constraints, which provides incentives to improve efficiency;

• establishing an institutional and legal framework to secure property rights, the rule of law, and transparent market-entry regulations.

Factors behind growth

3. No one pattern characterizes the growth experience of the transition economies. Indeed, substantial differences exist among the countries of Central Europe, the Baltics, and the 12 members of the Commonwealth of Independent States (CIS), although the Baltics share some characteristics with the other two groups, specifically, the deep decline of the CIS and the earlier recovery of Central Europe. It is useful, however, to view the 25 transition countries as falling into several categories: those with consistent growth, those with growth reversals, and those with little or no growth.

4. Do the transition economies differ all that much from one another? What ele­ments in their structure and development shed light on their differing rates of growth? Regression analysis done in an underlying study allows us to draw a number of conclusions.

5. The three groups differ considerably from one another in growth rates, with the Central European and the Baltic coun­tries showing a solid, steady rate of over 4 percent a year, while CIS countries as a whole, and those countries that have undergone economic reversals, give evidence of much less progress. These uneven growth rates sug­gest that differences in initial conditions such as having less distorted economic structures or closer similarities to market economies, may be important determi­nants of subsequent progress. But while initial conditions do matter — as the con­trast in performance between Central Europe and the CIS shows — they are less relevant for growth than are differences in policy during the transition. Growth rates in the group of CIS countries that show progress are very high, because several small economies (Armenia, Azerbaijan, and Georgia) that initially suffered eco­nomic decline in the wake of conflict and civil unrest are rebounding from very low basis.

6. Growth has generally been more vigor­ous and has certainly come sooner in countries that have controlled inflation. Countries with consistent growth have, on average, much lower inflation rates.

7. Another key determinant of progress is the degree of reform or market liberalization. An analysis of the liberalization of prices, the financial sector, and external trade, and the enterprise reform indicates a distinctly higher liberalization index in the Baltics and Central Europe – that is, in the countries with much better growth performance than in countries that have suffered growth reversals or have experienced slower growth.

8. Countries that liberalized prices early and comprehen­sively have experienced the earliest output recoveries. Output has also increased rapidly in countries with high average growth rates of exports, suggesting “that opening an economy to outside influences and stimulating output to generate exports are important determinants of growth”.

9. The share of the private sector in GDP is distinctly larger for countries with rapid and consistent growth than for those with slow and uneven growth. As always, exceptions to the rule can be found. Russia , for example, has made great strides in privatization but exhibits little or no growth. The shortcomings of its approach to privatization are perhaps one reason why growth did not follow.

10. Foreign direct investment appears to play a role. This investment is highest in the successful economies of Central Europe and the Baltics, where it amounts to $70—$75 per capita. That the causation does not run from growth of foreign investment is suggested by the fact that even those CIS countries that have enjoyed consistent growth have not attracted anything like the same amounts of foreign direct investment.

Further observations on growth

11. First, the period of transition can usefully be divided into the early so-called decline period (1990—93) and the later growth period (1994—98). The statistical fit for most variables is far stronger for the growth period than for the period of decline.

12. Second, the influence on output of many key variables — the reform index (based on World Bank and European Bank for Reconstruction and Development (EBRD) work), for instance — is again far stronger in the growth period than in the first period.

13. Third, those who suggest that reform is painful are absolutely right. Output declines, and does so more sharply in fast reformers, but early reforms pay off in terms of earlier recovery and more robust subsequent growth (Poland is a case in point).The regression results noted above confirm this pay off.

14. Fourth, investment alone does not ensure early growth and recovery — that is, one cannot force economic growth by increasing investment. Given that investment takes time to produce output, it is normal to see investment increases fol­lowed by growth increases two or three years later. One does not observe this pattern in transition economies, where investment-to-GDP ratios generally started rising only when growth began to recover. Some new investment, localized at the firm level or in a given sector, will be needed for initial growth. Furthermore, once recovery well under way — as, for exam­ple, in Hungary or Poland — a higher level of investment becomes increasingly important if growth is to be sustained. But until conditions for an efficiency-seeking market economy are in place, investment alone is not going to provide sustainable growth.

Lessons

We conclude by noting five lessons for countries seeking to achieve consistent and sustainable growth.

• The first is the least surprising and least controversial: sustained macroeconomic stabi­lization (that is, inflation control) is essential.

• The second lesson is “no pain, no gain”. Delayed reforms can indeed defer the pain, but they also defer sustained recovery and increase the risk that growth will be reversed. At first glance, there appear to be certain exceptions. Belarus and Uzbekistan, for instance, have grown in recent years, yet their reform efforts, as measured by the index, were not strong. These countries exhibit some of the same char­acteristics as Albania, Bulgaria, and Romania (high inflation during growth, limited advances in reform) and may suffer reversals as those three countries did, but this remains to be seen.

• The third lesson is that there is no royal road to reform. In our analysis, we attempted to test whether any one of the individual compo­nents of reform by itself pointed the way. The answer was no. Basically, all the components show an individually positive correlation with growth, but when the overall index is examined, none has an overpowering impact. Thus, there is no one key, no panacea. One needs to imple­ment all the different components of reform. Growth comes as a result of a great deal of effort by many people doing the right things over an extended period.

• The fourth lesson concerns unfavorable ini­tial conditions. It is fair to ask whether relatively favorable initial conditions in Central Europe provided those countries with an opportunity to recover more quickly than the coun­tries of the former Soviet Union. The answer, of course, is yes. Conversely, unfavorable initial conditions, such as a distorted industrial system, certainly have a negative effect on growth. However, that negative effect is by no means fatal and can be offset by comprehensive reforms. The best illus­tration of this may be the Baltic countries which have achieved growth performances comparable to those of the most advanced reformers among the Central European countries. They had the same unfavorable initial condition of overindustrialization as most of the countries of the for­mer Soviet Union and started far behind Central Europe. But, much more quickly than the CIS countries, the Baltic countries undertook reforms, achieved greater liberalization, and then achieved substantial rates of growth.

• The fifth lesson concerns institutional development. The econometric analysis included a separate index for the development of a legal framework, which appears to play an important role in reform. The results suggest that developing an appropriate legal structure is indispensable, but not necessarily in advance of other reforms. However, if development of the legal system is delayed too long — if one puts off the implementation of the rule of law, enforcement of discipline, and security of property rights — then other reforms are unlikely to produce significant benefits.

© Finance&Development

Task 2. Scanning

 Scan the text to find the following information:

1. important determinants of growth typical of the three groups of economies;

2. arguments proving that early reforms pay off in terms of earlier recovery and more robust subsequent growth;

3. the estimation of the role played by a legal framework in reform process;

4. the causes that lead to slow economic progress, a reversal of growth, and a collapse of financial stabilization.

Task 3. Building vocabulary

1  Before you read the text, study Key Words and Word-Combinations and give Russian equivalents for them.

KEY WORDS AND WORD-COMBINATIONS

sustainable recovery of output

to restrain expansion of output

to encourage / to stimulate the expansion of output

consistent, sustainable economic growth

to develop indirect market-oriented instruments

to achieve effective enterprise management

to impose hard budget constraints

to provide incentives to improve efficiency

to establish an institutional and legal framework

to secure property rights

to secure the rule of law

transparent market-entry regulation

to undergo / to suffer economic reversals

distorted economic structures

liberalization index

investment-to-GDP ratio

2  The vocabulary exercises below will help you to master the key vocabulary. It will provide you with the required vocabulary to speak on the problems under consideration.

A. Find in the text English equivalents for the following word-combination.

Стимулировать рост производства; вводить жесткие бюджетные ограничения; индекс либерализации; прозрачные правила доступа на рынок; сдерживать рост производства; создавать институциональную и правовую основы; устойчивый подъем производства; отношения инвестиций к ВВП; претерпевать спады в экономике; гарантировать права собственности; создавать стимулы для повышения эффективности; деформированные экономические структуры; последовательный и устойчивый экономический рост; обеспечивать соблюдение закона; создавать косвенные ориентированные на рынок инструменты; добиваться эффективного управления предприятием.

B. Match the following English word-combinations from the text to the Russian equivalents given below.

To impose change on almost every element of society; a complex undertaking in any area; economic assessment; to attach the importance to output growth; output growth immediacy for the welfare of everyone; to be less relevant for growth; the degree of reform or market liberalization; to liberalize prices early and comprehensively; to make great strides in privatization; good performance on IMF programs; to make the commitment to do well in promoting general economic reform; an environment conductive to vigorous economic growth; to pay off in terms of earlier recovery; robust subsequent recovery; efficiency gains; to defer sustained recovery; to have an overpowering impact; enforcement of discipline.

Брать на себя обязательства добиться существенного прогресса в проведение общих экономических реформ; степень продвинyтости реформ; вынуждать проводить изменения практически во всех структурах общества; влиять на экономический рост в меньшей степени; эффективное выполнение программ МВФ; статистическое соответствие; последующий значительный рост; значительно продвинуться в приватизации; благоприятные условия для значительного экономического роста; экономическая оценка; повышение эффективности; давать положительные результаты; с точки зрения скорейшего экономического подъема; непосредственное влияние роста производства на благосостояние всех членов общества; сложная задача в любой области; тормозить достижение устойчивого подъема; укрепление дисциплины; придавать значение росту производства; оказывать определяющее воздействие; проводить либерализацию цен на раннем этапе и в полном объеме.

3  Word Study

Economic terms adjustment, investment, savings, transactions are frequently used in the analysis of stabilization processes in transition economies. Study word-combinations with these terms to sound more expertly. Describe the current situation in Russia.

adjustment (n)

~ of economy to monetary changes приспособление экономики к изменениям в денежной

политике

~ of flows of savings and investment установление равновесия между сбережениями и инвестициями

~ of national income приспособление национального дохода к изменению каких – л. экономических величин

cost of living ~ индексация заработной платы в связи с ростом прожиточного минимума

сurrency ~ пересмотр валютных паритетов

downward ~ понижение (цены); тенденция к понижению

exchange-rate ~ регулирование валютного курса

price ~ корректировка цен

wage-level ~ корректировка уровня заработной платы