World Bank’s Action on Inflation

1. The World Bank highlighted that Russia must control inflation and allow for appreciation of the ruble if it wishes to see its robust economic performance stay on course. Recent curbs imposed on staple goods would do little to reverse inflation and could lead to price distortions. The surge in capital inflows not being absorbed by the Stabilization Fund is driving money expansion and exerting pressure on the ruble. The strong ruble has in its turn been driving up labor costs. It is suggested that wages will be growing more rapidly than productivity.

2. GDP growth has been dented by appreciation of the ruble, making exports more expensive abroad and imports less expensive to domestic consumers. Any economic policy decision involves a tradeoff, and the missing link between inflation and export competitiveness of Russia’s industrial growth is high productivity. Another challenge highlighted by the World Bank was the shrinking and rapidly aging population. By 2025, the population will drop by 12 percent, and one in five people will be aged over 65. The situation in Russia is of particular concern because of the twin factors of a low birth-rate and high mortality.

3. Salary increases in the country don’t meet up with the requirements of aging population because there is a big gap between the wages of young specialists and those who toiled their way to retirement. However Russia earned praise for maintaining an economic policy that allowed the country to weather the global liquidity and credit crunch crises. Besides Russia’s capital inflow into the economy has increased considerably.

( From ‘ The Moscow Times’, 2008, July )

Выполнение:

1. The World Bank highlighted that Russia must control inflation and allow for appreciation of the ruble if it wishes to see its robust economic performance stay on course. Recent curbs imposed on staple goods would do little to reverse inflation and could lead to price distortions. The surge in capital inflows not being absorbed by the Stabilization Fund is driving money expansion and exerting pressure on the ruble. The strong ruble has in its turn been driving up labor costs. It is suggested that wages will be growing more rapidly than productivity.

Всемирный Банк подчеркнул, что Россия должна контролировать инфляцию и обеспечить укрепление рубля, если он хочет видеть ее, высокие экономические показатели пребывания на курсе. Последние бордюры, налагаемые на основные товары, не на обратную инфляцию и может привести к искажению цен. Резкое увеличение притока капитала не поглощается Стабилизационным фондом, является движущей рост денежного предложения и оказывает давление на курс рубля. Сильный рубль может, в свою очередь, брать вверх затраты на оплату труда. Предполагается, что заработная плата будет расти быстрее, чем производительность.

3. Salary increases in the country don’t meet up with the requirements of aging population because there is a big gap between the wages of young specialists and those who toiled their way to retirement. However Russia earned praise for maintaining an economic policy that allowed the country to weather the global liquidity and credit crunch crises. Besides Russia’s capital inflow into the economy has increased considerably.

Увеличение заработной платы в стране не встретиться с требованиями старения населения, так как существует большой разрыв между заработной платы молодых специалистов и тех, кто трудился, к выходу на пенсию. Однако Россия заслужила похвалу за поддержание экономической политики, которая позволила стране пережить глобальный кризис ликвидности и кредитный кризис. Кроме того приток капитала России в экономике значительно возрос.

  • Определите, являются ли приведенные ниже утверждения (1, 2, 3)

а) истинными (true)

б) ложными (false)

в) в тексте нет информации (noinformation)

  1. The World Bank highlighted that Russia must control inflation.

2) Soon there will be no inflation in Russia.

3) There was only one challenge highlighted by the World Bank.

Выполнение:

1) true

2) no information

3) false

  • Прочитайте абзац 3 и ответьте письменно на следующий вопрос:

What did allow Russia to weather the global liquidity and credit crunch crisis?

Выполнение:

Maintenance of economic policy allowed Russia weather the global liquidity crisis and the credit crunch.