Change the word order in the sentences using the Subjective Infinitive Complex.

Economists believe unemployment benefits to stop from looking for a job. - Unemployment benefits are beleived to stop people from looking for a job.

1. Economists think youth employment to be low in Germany education is subsidized by the state.

2. Economists consider government spending cuts to be necessary in order to cut taxes.

3. Economists say economic system to be the particular way in which the economic activity in a country is organized.

4. Economists believe workers in poor countries to be much 1ess productive as a result of bad working conditions.

5. Statistics say the 16 percent of world population living in the industrial countries receive nearly 80 percent of the world income.

6. We know public goods to be paid for out of general taxation.

7. We know a subvention to be money given by a government, a person or an organization to help somebody do something for the good of the public, for example, in education or sciences.

8. We consider a subsidy to be money given by a government to certain producers to help them to produce at a low price goods and services needed by the public.

Unit 13

 

 

international monetary system міжнародна валютна система

international monetary institutions міжнародні фінансові організації

to reconcile примиряти

balance-of-payments position стан платіжного балансу

to settle accounts урегулювати рахунки

adjustment коректування, виправлення

payment imbalances нерівновага виплат

employment opportunities вакансії

exaggeration прибільшення

to leave smb. worse off ставити когось в невигідне положення

imposition of controls введення контролю

 

Read sentences only with new lexis and translate them.

1. Employment opportunities for some workers are improved when exports thrive and are weakened for other workers when foreign products compete effectively in price or quality with domestic output.

2. Interdependence among nations has intensified lately.

3. The international monetary system is concerned with the financing of payments imbalances among countries by the use of credit or reserves.

4. The International Monetary Fund, an association of governments was set up on 27th December, 1945.

5. A movement in the exchange rate may benefit an individual in one his roles but leave him worse off in another.

 

Put the missing letters.

Int..rn..at…nal, mon..t..ry, s..stem, exag..r..ti..n, o..o..tunities, imp..s..t..on of contr..ls, ad..ust, rec..nc..le, to s..ttle a..ounts.

 

Read the text.

INTERNATIONAL MONETARY SYSTEM

INTERNATIONAL MONETARY INSTITUTIONS

 

There is little exaggeration in saying that international monetary developments affect all individuals as workers, consumers, travellers, businessmen producing goods for domestic or foreign markets, and investors at home or abroad. The channels which transmit the impact of monetary events to people in their various roles in society are numerous.

Employment opportunities for some workers are improved when exports thrive and are weakened for other workers when foreign products compete effectively in price or quality with domestic output. A movement in the exchange rate may benefit an individual in one his roles but leave him worse off in another. The individual as a consumer may have a different view of and a different interest in what happens in the international monetary sphere from that of the individual as a worker.

Business activity is heavily influenced by international monetary conditions affecting prices, exchange rates, interest rates, imposition of controls on exports or imports or on capital movements.

Interdependence among nations has intensified lately, thus there is great interest in the functioning of the international monetary system. The international monetary system is a set of arrangements, rules, practices, and institutions under which payments are made and received for transactions carried out across national boundaries¹. The international system is concerned not only with the supply of international money but with the relationships among the hundred or so currencies of individual countries and with the pattern of balance-of-payments relationships and the manner in which they are adjusted land settled.

International monetary relations are governed by rules of the Articles of Agreement² of the International Monetary Fund³ and also by agreements and consultations among nations through other international institutions: the General Agreement on Tariffs and Trade (GATT)⁴, the Organization for Economic Cooperation and Development (OECD)⁵, the Bank for International Settlements (BIS)⁶, the United Nations Conference on Trade and Development (UNCTAD)⁷, the World Bank Group⁸ and other organizations.

The international monetary system is afflicted with problems⁹. The main reason is that the nations that participate in it are politically independent but economically and financially interdependent.

This discrepancy¹⁰ determines the functions of the international monetary system; at its best, the system acts to reconcile the conflicting economic policies of its politically independent members.

In order to perform this reconciling function, the system is concerned, first, with how nations act to influence their balance-of-payments positions, with their policies that affect exchange rates.

The system is concerned, second, with how nations settle their accounts¹¹ with one another. Third, the system is concerned with the amount and form of international money.

In broad terms¹², the international monetary system involves the management, in one way or another, of three processes:

1) the adjustment of balance-of-payments positions, including the establishment and alteration of exchange rates¹³.

2) the financing of payments imbalances among countries by the use of credit or reserves; and

3) the provision of international money.

Words you may need:

National boundaries¹- державні кордони

Articles of Agreement2 - устав

International Monetary Fund³ - Міжнародний Валютний Фонд

the General Agreement on Tariffs and Trade (GATT)⁴ - Генеральне положення про тарифи та торгівлю

the Organization for Economic Cooperation and Development (OECD)⁵ - Організація економічного співробітництва та розвитку

the Bank for International Settlements (BIS)⁶ - Банк міжнародних розрахунків

the United Nations Conference on Trade and Development (UNCTAD)⁷ - Конференція ООН з торгівлі та розвитку

the World Bank Group⁸ - група Світового банку

is afflicted with problems⁹ - обтяжувати проблемами

discrepancy¹⁰ - розходження, протиріччя

to settle accounts¹¹ - урегулювати розрахунки

broad terms¹² - у широкому смислі

establishment and alteration of exchange rates¹³ - установлення та зміна обмінних курсів

 

Exercises

1. Answer the questions:

1. In what way are individuals affected by international monetary developments?

2. What is the international monetary system?

3. What is the international monetary system concerned with?

4. What are the international monetary relations governed by?

5. What are the major international monetary institutions?

6. Is the international monetary system afflicted with problems?