资源描述
Unit 9Beyond Bretton Woods 2Exercises1. Answer the questions on the text:1) According to the article, what is the essence of “quantitative easing” restarted by the Fed?Printing money to buy government bonds.2) Why is no one satisfied with todays international monetary system?Because: Reason 1: Dominance of the dollar as a reserve currency and Americas management of it fail to reflect the realities of the world economy and leave others vulnerable to Americas domestic monetary policy.Reason 2: The system has fostered the creation of vast foreign-exchange reserves, particularly by emerging economies, thus poor countries lend to rich ones and lose investment opportunities.Reason 3: Scale and volatility of capital flow render unsteadiness for emerging economies.3) What is “trilemma” according to the text?The independence of domestic monetary policies, stability of exchange rate and perfect capital mobility cant be realized at the same time. One must give up one factor to uphold the other two.4) What is the reason for a freer capital flow in these days?Globalization as much as to the removal of restrictions.5) Why are countries unwilling to have their currency exchange rate to rise greatly and how do they control it?Because abrupt rise in exchange rate would cripple export and countries want an undervalued currency to encourage export-led growth, so they buy foreign exchange to stem the rise.6) How is “Bretton Woods 2”created, according to the author?Emerging economies are coping the behavior of China, keeping their exchange rate at a low level so as to maintain their international competitiveness, thus they have to be tied to US dollars. This phenomenon then results in Bretton Woods 2.7) What is “Triffin dilemma”?The conflict between the benefits and costs of a country with a reserve currency running a large current account deficit. The reserve-currency country enjoys the consumption benefit of running a trade deficit, while the rest of the world benefits from the additional liquidity, which helps facilitate trade. The cost comes from the declining value and credibility of any currency which runs a persistent trade deficit - eventually leading to a reluctance of creditors to hold the reserve currency.8) Why cant SDRs become a central reserve asset?Because as Mr Eichengreen writes: “No global government means no global central bank, which means no global currency.9) According to the text, what is the measure that the G20 could possibly take to rebalance world economy?It can develop a plan with target ranges for current-account balances and real exchange rates and make it supported by peer pressure rather than explicit sanctions.10) What can be inferred from the title “Beyond Bretton Woods 2” in relation to the world economy?There are probably two results of the world economy: One is that if Americas economy recovers and its medium-term fiscal outlook improves, the pace at which capital shifts to the emerging world will slow. And if China makes its currency more flexible and its capital account more open in good time, the international monetary system will be better able to cope with continued financial globalisation and a wide growth gap between rich and emerging markets. The other is that if the worlds biggest economy stagnates and the second-biggest does not change its monetary policy, a rigid monetary system will eventually buckle.)2.Fill in each blank of the following sentences with one of the phrases in the list given below: 1) The latest statistics indicate that this regions economic recovery is tied to higher education.2) According to financial news, this nations currency will appreciate against euro in real terms.3) The couple described their narrow escape from the earthquake in New Zealand as they were inside the church when it began to fall apart.4) If you never take initiative to make it happen, this scheme is only something on paper.5) At times of critical moment, one must subordinate passions to reasoning to avoid any possible blunders.6) Over two million migrant workers flooded into Beijing last year from all parts of China to seek potential opportunities for personal development.7) Thousands of city school teachers stand to lose their jobs under a tough budget that is set to unveil this coming Thursday.8) The car dealer guarantees that if customer is unhappy with the model he purchases, whether on a bill of sale or hire purchase, he can totally swap it for a new one.9) Authorities in Zimbabwe have issued a new mega bank note in an attempt to cope with the troubled African countrys runaway inflation.10) Economists use the term liquidity to describe the ease with which an asset can be converted into the economys medium of exchange.3. Match the terms in column A with the explanations in column B:A B 1)reserve currency a) Ability of money to move across national boundaries freely in pursuit of higher returns. 42)treasury bond b)A government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market. 73)currency war c) The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply. 54) capital mobility d)A mechanism used by central banks to providefinancial institutions withaccess to funds tosatisfy reserve requirements and to increaseliquidity over longer periods. 85)monetary policy e) A currency held by many governments and as part of their foreign exchange reserves and also used as the international pricing currency for products traded on a global market. 16) Special Drawing Right (SDR) f)A condition in international affairs wherecountries compete against each other toachieve a relatively low exchange rate for theirhome currency. 37)quantitative easing g)A marketable, fixed-interest U.S. governmentdebt security with a maturity ofmore than10years. 28) lending facility h) A period of time in which loans are lent by the government and banks in an unrestrained way . 99)credit binge i) A situation where a countrys total import of goods, services and transfers are greater than its total export of goods, services and transfers.1010)current account deficit j)An international type of monetary reserve currency created by the International Monetary Fund and used as a supplement to the existing reserves of member countries. 64. Translate the following into Chinese:如果国际组织间举办一场全球性旳声望比赛，国际货币基金组织毫无疑问会是最后一名。在过去30年里，这家位于华盛顿旳机构以提供财政资助旳方式给多种政府强加苛刻旳条件，在非洲、亚洲和拉丁美洲地区激起了人们旳恐惊和反感。随着世界经济强劲增长，当它旳作用在近十年初期削弱到接近无关紧要旳地步时，几乎没人同情它。当选为总裁旳法国人卡恩（Dominique Strauss-Kahn）警告它旳董事们说：“国际货币基金组织旳存在目前已经到了生死攸关旳时刻。”然而，国际货币基金组织忽然间又成为了瞩目旳焦点，这次它扮演了一种人们不熟悉旳新角色：这家机构被觉得是当今旳救世主，有能力拯救正在崩溃旳世界经济。4月2日在伦敦召开旳20国首脑会议旳重要成果就是达到了一项合同，将国际货币基金旳资金额度提高三倍至七千五百亿美元，并且批准其自行额外发行两千五百亿美元。这笔钱旳一部分将用来资助那些忽然陷入经济困难旳国家，另一部分则为衰退旳世界经济提供更广泛更富余旳流动性。但是这些额外旳钱只是整个事件旳一部分。随着新资金旳注入，国际货币基金旳运作方式至少在理论上将发生重大变化。将来欧洲国家不再象目前同样拥有推选总裁旳自主权。同步通过对其秘密股权体制或配额体制旳改革，美国和其他发达国家对其政策旳支配将让步于一种更为平衡旳管理体系，其中如巴西，中国和俄罗斯等发展中国家有更多发言权。国际货币基金旳关注范畴也待转变，20国集团但愿它能以全球经济警察旳角色发挥更为积极旳作用，监管重要发达经济体及欠发达经济体旳政策，当发现危险旳行为时吹哨示警。从理论上讲，国际货币基金组织应能反映出全球经济秩序旳变化和因危机而实行旳更严格旳金融监管。5. Fill in each of the following gaps with one of the sentences given below:1) By importing savings from abroad, poor countries can invest more than they are able to set aside from their own meagre output.2) They also benefit from more sophisticated banking.3) Foreign investors may have a better nose for boardroom shenanigans and a strong incentive to protect minority shareholders.4) In practice, open countries do seem to achieve lower inflation though there is scant evidence that they run smaller budget deficits.5) But if foreign capital promotes these three virtues, then the study may have inadvertently strained out much of the benefit of financial globalisation.Supplementary ReadingWeighed Down1. It is considered to be the surest way to lend to states because _.A. they collect tax nationwide as sustainable revenueB. they administrate their countries and are less likely to collapseC. they wont close up shops and flee their creditorsD. Both A and B 2. According to the text, government default is _.A. the absence of duty that a government should performB. the inability or refusal of a government to pay back money it has borrowed C. the admittance of debt that a government owesD. None of the above3. All of the following are the consequences of Greek government debt except _.A. instabilities in global financial marketsB. depreciation of euroC. credit downgrade and major political problems D. stock markets elsewhere are impacted4. By quoting all these statistics of government debt by OECD in the third paragraph, the author mainly indents to _.A. disclose how these debts are shifted from private-sector to public-sectorB. signal the potential crisis that the world economy faces in the near future C. warn the impact caused by the Great Recession on global financial marketsD. reveal the current pressure rendered by unsustainable mountains of debt5. Why is the result of mounting sovereign debt NOT automatically dangerous? A. Different countries have different levels of tolerance and abilities to finance the debt. B. U.S. Treasury bills is a safe haven to help finance the deficits.C. Japans ample domestic sources of funds find no trouble financing its deficits.D. All of the above.6. What does economist Carmen Reinhart mean by saying, “growth prospects are really taking a hit” ? A. Growth prospects are taking initiative to look forward.B. Growth prospects are getting popular among general public.C. Growth prospects are suffering a defeat. D. Growth prospects are drawing more and more attention.7. What is U.S. President Barack Obamas attitude towards government debt? A. Objective and positive.B. Serious and decisive. C. Practical but pessimistic.D. Indifferent but reluctant8. What is the measure that euro zone takes to cope with Greek crisis? A. Collective assistance to Greece and great effort to stabilize EUs economy. B. Elimination of impact by dismissing Greece as an EU member.C. Abandoning euro as a common currency.D. Changing the way the euro zone works by alternating presidency.9. Greece Prime Minister George Papandreous policy can be described as _.A. high-pressuredB. softenedC. agreeableD. tough 10. From the context, we can infer that “skip town” in the last sentence probably means _.A. making cheap promisesB. disappearing without notifying anyone C. omitting the needs of certain towns and citiesD. making hard choices
展开阅读全文