Text-study

I. Learn the following words

Consecutive – последовательный;

contraction – сокращение, уменьшение;

recession – спад;

to overstate – преувеличивать;

gauge – мера;

hoard – резерв, хранилище;

to pursue – проводить;

to take off the strain – снимать напряженность;

to constrain – ограничивать, сдерживать;

to squeeze – уменьшать;

to boost – стимулировать;

to spur – стимулировать.

II. Answer the following questions

1. What are the reasons to believe that the Japanese economy is slowly on the mend?

2. What does the author mean by more aggressive monetary expansion?

3. What are Japan's longer-term prospects?

4. Is Japan an attractive destination for inward investments? Why?

5. What makes Japan look like America in the early 1990s?

III. Complete the sentences with suitable words from the box

deflationary pressures; unsterilised foreign-exchange intervention; the monetary and fiscal mix; to spur price competition; the deregulation of retailing

1. Household spending has been depressed by continuing … .

2. Instead, the bank should be pursuing more aggressive monetary expansion, either through … or by buying government bonds.

3. Not only would this help to take some of the strain off fiscal policy, but by adjusting … .

4. … has spawned big, independent retailers able to force manufacturers to be more efficient.

5. The Internet is also starting … .

IV. Give Russian equivalents for the following words and phrases used in the text

two consecutive quarters of contraction; household spending; bank lending; unsterilised foreign-exchange intervention; excess capacity; investment opportunities; return on capital.

V. Translate the following sentences from English into Russian in writing

1. Large inflows of foreign direct investment, notably in cars and telecoms, are boosting competition.

2. The Internet is also starting to spur price competition.

3. Because of political problems, the government seems to be backtracking on some structural reforms.

4. For the previous year as a whole, Japan's economy grew by an estimated 0.6%.

5. In the short-term, the reduction by firms of excess capacity, labour and debts will admittedly constrain new business investment and squeeze workers' incomes.

VI. Fill in the blanks with suitable prepositions

Contrary … what some claim, big changes are … way. Financial deregulation is forcing firms to focus … return … capital. Large inflows … foreign direct investment, notably … cars and telecoms are boosting competition. The deregulation … retailing has spawned big, independent retailers able to force manufacturers to be more efficient. The Internet is also starting to spur price competition.

… some ways Japan looks like America … the early 1990s, when businesses engaged … painful changes, and workers' real incomes fell. Japan's task is far bigger, but there is a silver lining … this cloud: the country's potential … gains in efficiency and productivity is also much bigger.

VII. Fill in the blanks with articles if needed

This is sure to do something nasty to … economy, which is already weak. One bank, Goldman Sachs, guesses that … government's plans for … banks would shave … full 1.5% off economic growth and put more than 300,000 people out of work. So … central bank, … Bank of Japan, stands ready with … third economic initiative: easier money. This could involve … cutting interest rates, driving the yen lower, or buying … government bonds, land or other assets.

One reason for … multiplicity of … measures is … traditional desire for … consensual approach. It means that … policies emerge messily in public rather than being put together neatly in private. Decisions take too long, especially on … urgent problems such as … banks and … economy, which has weakened dramatically in … past few weeks.