Unit 3 Making Economic Sense 解读经济 √Learning objectives 1.In this unit students will learn words and expressions related to various economic indicators. 2.Students will be able to use economic indicators to talk about economic situations. Background reading Notes: 1.suite包厢 2.stands看台 3.preside over掌管，领导，管理 The city council is presided over by the mayor. The present director has presided over a rapid decline in the firm's profitability. 4.autograph亲笔签名 S.the Fed the Federal Reserve System,美国联邦储备体系，美联储，在美国，由 12家地区联邦储备银行组成美国的中央银行权利机构，由位于华盛顿的强有 力的联邦储备董事会集中控制，现在已变得颇似一个政府部门。 6.step down辞职，让位给别人 7.expire结束，期满，终止 Our present lease on the flat expires next month. When does your driving licence expire? 8.retreat撤退，退却 He retreated from the public's eye 9.verdict裁决，决定，意见 My wife's verdict on my cooking was very favourable. 10.distill吸取，提取 These are useful advice distilled from a lifetime's experience. 11.1 iquidity流动性，清偿能力 12.fare进展，过日子 How did you fare while you were abroad? 13.Paul Volcker1979-1987期间任美联储主席，为治理严重的通货膨胀，他连续 三次提高官方利率，实施紧缩的货币政策。这一政策的结果是美国出现高达 两位数的官方利率和20%的市场利率，短期实际利率（扣除通货膨胀后的实际 收益率)从1954年一1978年间平均接近零的水平，上升到1980年一1984年 间的3%—5%。 14.cement加强，巩固 cement a friendship
Unit 3 Making Economic Sense 解读经济 3 Learning objectives 1. In this unit students will learn words and expressions related to various economic indicators. 2. Students will be able to use economic indicators to talk about economic situations. Background reading Notes: 1. suite 包厢 2. stands 看台 3. preside over 掌管，领导，管理 The city council is presided over by the mayor. The present director has presided over a rapid decline in the firm’s profitability. 4. autograph 亲笔签名 5. the Fed the Federal Reserve System, 美国联邦储备体系，美联储，在美国，由 12 家地区联邦储备银行组成美国的中央银行权利机构，由位于华盛顿的强有 力的联邦储备董事会集中控制，现在已变得颇似一个政府部门。 6. step down 辞职，让位给别人 7. expire 结束，期满，终止 Our present lease on the flat expires next month. When does your driving licence expire? 8. retreat 撤退，退却 He retreated from the public’s eye. 9. verdict 裁决，决定，意见 My wife’s verdict on my cooking was very favourable. 10. distill 吸取，提取 These are useful advice distilled from a lifetime’s experience. 11. liquidity 流动性，清偿能力 12. fare 进展，过日子 How did you fare while you were abroad? 13. Paul Volcker 1979-1987 期间任美联储主席，为治理严重的通货膨胀，他连续 三次提高官方利率，实施紧缩的货币政策。这一政策的结果是美国出现高达 两位数的官方利率和 20%的市场利率，短期实际利率(扣除通货膨胀后的实际 收益率)从 1954 年—1978 年间平均接近零的水平，上升到 1980 年—1984 年 间的 3%—5%。 14. cement 加强，巩固 cement a friendship
l5.Mervyn King英国央行(Bank of England)行长、通胀目标政策最早的倡导者 之一，他认为任何成功的货币政策框架，必须将通胀目标和对震荡的回应结 合起来。 l6.John Maynard Keynes约翰·梅纳德·凯恩斯(John Maynard Keynes,1883一1946)英国人，是20世纪上半叶一位才智横溢的理论创新 者，当时最杰出的政治经济学家，宏观经济学的奠基人，布雷顿森林体制的 缔造者之一。 17.A1 fred Marshall阿尔弗雷德.马歇尔(1842一1924)，近代英国最著名的经济 学家，新古典学派的创始人，19世纪末和20世纪初英国经济学界最重要的 人物。马歇尔的最主要著作是1890年出版的《经济学原理》。该书在西方经 济学界被公认为划时代的著作，也是继《国富论》之后最伟大的经济学著作。 18.obituary讣告 19.anecdotal逸事的，逸闻的 20.Carnegie Mellon University美国宾州的一所大学，创建于1900年，它的计 算机科学，工程学和商业专业比较有名。 格林斯潘的记录：一位不惧偏离规则的积极分子 本月初当格林斯潘第一次去观看华盛顿全国棒球赛的时候，他受到了英雄般 的欢迎，保安想请这位联储主席在有空调的管理人员包厢就座，但格林斯潘先生， 这位真正的棒球迷，却选了个露天座位，在华盛顿的酷夏中坐下。这位18年来 一直掌管着美国利率制定的79岁的央行行长到达棒球场时受到了欢呼，他附近 的人们要求他在他们的棒球票上签名，远处的人们呼喊着“加油！艾伦！”“干得 好！艾伦！别让利率降下来！” 这位联储的主管一月底随着央行联储董事会任期届满将退职，本周末在怀俄 明的杰逊洞将举行美联储的夏季例会，届时来自世界各地的央行行长们和经济学 家们将聚集在一起为格林斯潘时代做一个总结。 艾伦格林斯潘是在1987年8月11日接掌联储的一不到两周后就发生了 “黑色星期一”，当时道琼斯工业平均指数下降了22.6%：这是美国股市历史上 的最大日跌幅。格林斯潘先生迅速作出了反映，他说联储会向金融体系注入资金 以维持流动性，这番话打消了人们对他的前任保儿沃克离任后央行会如何行事的 担忧。 那之后，美国的经济增长率一直保持在年3%左右，消费价格指数的年增长 率也平均为3%左右，失业率5.5%多一点，格林斯潘夯实了联储反通涨的信誉， 但他自己的声誉确是建立在他所显示出的灵活性上，他的继任者面临的挑战将是 如何做到像格林斯潘那样总能在危机时刻做对抉择。 英格兰银行行长麦文金曾在一次采访中指出了他的这位同行格林斯潘思想 深刻，处理问题灵活，有着很强的沟通和判断能力，他引用宏观经济学的创立者 约翰梅纳德凯恩斯评论另一位英国经济学家阿儿佛雷德马歇耳时写下的一段话： “凯恩斯，在给马歇耳写的悼文中说，一位伟大的经济学家必须拥有罕见的多种 天赋：数学，历史学，政治和哲学。艾伦格林斯潘就体现了这一切。” 从20世纪40年代起，格林斯潘先生就开始研究美国的经济周期，在联储的 时候，他己经显示出了掌握数据的能力，他不仅引用政府统计数据，联储的数据， 还利用公司的报告和佚事。卡内基梅隆大学的教授和联储历史学家爱伦梅兹说：
15. Mervyn King 英国央行(Bank of England)行长、通胀目标政策最早的倡导者 之一，他认为任何成功的货币政策框架，必须将通胀目标和对震荡的回应结 合起来。 16. John Maynard Keynes 约 翰 · 梅纳德 · 凯恩斯（ John Maynard Keynes,1883——1946）英国人，是 20 世纪上半叶一位才智横溢的理论创新 者，当时最杰出的政治经济学家，宏观经济学的奠基人，布雷顿森林体制的 缔造者之一。 17. Alfred Marshall 阿尔弗雷德·马歇尔（1842—1924），近代英国最著名的经济 学家，新古典学派的创始人，19 世纪末和 20 世纪初英国经济学界最重要的 人物。马歇尔的最主要著作是 1890 年出版的《经济学原理》。该书在西方经 济学界被公认为划时代的著作，也是继《国富论》之后最伟大的经济学著作。 18. obituary 讣告 19. anecdotal 逸事的，逸闻的 20. Carnegie Mellon University 美国宾州的一所大学，创建于 1900 年，它的计 算机科学，工程学和商业专业比较有名。 格林斯潘的记录：一位不惧偏离规则的积极分子 本月初当格林斯潘第一次去观看华盛顿全国棒球赛的时候，他受到了英雄般 的欢迎，保安想请这位联储主席在有空调的管理人员包厢就座，但格林斯潘先生， 这位真正的棒球迷，却选了个露天座位，在华盛顿的酷夏中坐下。这位 18 年来 一直掌管着美国利率制定的 79 岁的央行行长到达棒球场时受到了欢呼，他附近 的人们要求他在他们的棒球票上签名，远处的人们呼喊着“加油！艾伦！”“干得 好！艾伦！别让利率降下来！” 这位联储的主管一月底随着央行联储董事会任期届满将退职，本周末在怀俄 明的杰逊洞将举行美联储的夏季例会，届时来自世界各地的央行行长们和经济学 家们将聚集在一起为格林斯潘时代做一个总结。 艾伦格林斯潘是在 1987 年 8 月 11 日接掌联储的——不到两周后就发生了 “黑色星期一”，当时道琼斯工业平均指数下降了 22.6%；这是美国股市历史上 的最大日跌幅。格林斯潘先生迅速作出了反映，他说联储会向金融体系注入资金 以维持流动性，这番话打消了人们对他的前任保儿沃克离任后央行会如何行事的 担忧。 那之后，美国的经济增长率一直保持在年 3%左右，消费价格指数的年增长 率也平均为 3%左右，失业率 5.5%多一点，格林斯潘夯实了联储反通涨的信誉， 但他自己的声誉确是建立在他所显示出的灵活性上，他的继任者面临的挑战将是 如何做到像格林斯潘那样总能在危机时刻做对抉择。 英格兰银行行长麦文金曾在一次采访中指出了他的这位同行格林斯潘思想 深刻，处理问题灵活，有着很强的沟通和判断能力，他引用宏观经济学的创立者 约翰梅纳德凯恩斯评论另一位英国经济学家阿儿佛雷德马歇耳时写下的一段话： “凯恩斯，在给马歇耳写的悼文中说，一位伟大的经济学家必须拥有罕见的多种 天赋：数学，历史学，政治和哲学。艾伦格林斯潘就体现了这一切。” 从 20 世纪 40 年代起，格林斯潘先生就开始研究美国的经济周期，在联储的 时候，他已经显示出了掌握数据的能力，他不仅引用政府统计数据，联储的数据， 还利用公司的报告和佚事。卡内基梅隆大学的教授和联储历史学家爱伦梅兹说：
“他从各个渠道吸取信息，并且能相当准确地理解这些信息的精髓，我所了解的 何其他联储主席都没有像他那样密切地关注每天的，每周的，每月的事件，并思 考这些事件的意义并能在大多数时候都理解正确。 这位联储主席过去作为商业经济学家的经历的一个好处就是他怀疑复杂的 经济模型及其预测，因为这些模型都是基于一个过去是预测未来的一个可靠的向 导的前提下的。“一种关系开始发生变化的征兆通常是出现了一些与我们对经济 世界应该表现的方式方面的假设不一致的事件，”他去年对美国经济家学会如此 说。 Answer to comprehension questions: 1.The audience gave Alan Greenspan a hero's welcome. 2.The public highly praised Alan Greenspan's response to "Black Monday"because his decision had eased the public's worries. 3.The challenge for his successor will be to match Mr.Greenspan's record of getting the big calls right,i.e.to make a proper response to major economic crisis. 4.Alan Greenspan has the rare combination of gifts:mathematician,historian, statesman,philosopher. PartA First listening:listen for the gist What is the main idea of news item one? The surprise increase in UK consumer price inflation during August raises a distributing question. What is the main idea of news item two? A proposed amendment raising the threshold at which personal income is levied has met with a mixed response from national legislators in China. What is the main idea of news item three? A group of small EU countries are seeking to water down some of the key proposals in G&debt relief deal agreed last week by G8 leaders at Gleneangles,leaked documents have revealed. What is the main idea of news item four? Crude oil prices hit a record 68 dollars a barrel after the US reported a decline in petrol stocks and China said its crude imports spiked in July,as strong demand on the mainland shows no signs of easing.Front-month October contracts on the New York Mercantile Exchange touched 68 dollars a barrel mid-morning in Singapore before easing slightly to 67.76,a gain of 44 cents from Wednesday's closing in New York.On an inflation-adjusted basis,oil prices would need to hit about 90 dollars a barrel to match the highs of 25 years ago. What is the main idea of news item five? The FTSE 100 Index was in the red for the third consecutive session as traders fretted over sharp falls in stocks across the Atlantic
“他从各个渠道吸取信息，并且能相当准确地理解这些信息的精髓，我所了解的 何其他联储主席都没有像他那样密切地关注每天的，每周的，每月的事件，并思 考这些事件的意义并能在大多数时候都理解正确。 这位联储主席过去作为商业经济学家的经历的一个好处就是他怀疑复杂的 经济模型及其预测，因为这些模型都是基于一个过去是预测未来的一个可靠的向 导的前提下的。“一种关系开始发生变化的征兆通常是出现了一些与我们对经济 世界应该表现的方式方面的假设不一致的事件，”他去年对美国经济家学会如此 说。 Answer to comprehension questions: 1. The audience gave Alan Greenspan a hero’s welcome. 2. The public highly praised Alan Greenspan’s response to “Black Monday” because his decision had eased the public’s worries. 3. The challenge for his successor will be to match Mr. Greenspan’s record of getting the big calls right, i.e. to make a proper response to major economic crisis. 4. Alan Greenspan has the rare combination of gifts: mathematician, historian, statesman, philosopher. Part A First listening: listen for the gist What is the main idea of news item one? The surprise increase in UK consumer price inflation during August raises a distributing question. What is the main idea of news item two? A proposed amendment raising the threshold at which personal income is levied has met with a mixed response from national legislators in China. What is the main idea of news item three? A group of small EU countries are seeking to water down some of the key proposals in G8 debt relief deal agreed last week by G8 leaders at Gleneangles, leaked documents have revealed. What is the main idea of news item four? Crude oil prices hit a record 68 dollars a barrel after the US reported a decline in petrol stocks and China said its crude imports spiked in July, as strong demand on the mainland shows no signs of easing. Front-month October contracts on the New York Mercantile Exchange touched 68 dollars a barrel mid-morning in Singapore before easing slightly to 67.76, a gain of 44 cents from Wednesday's closing in New York. On an inflation-adjusted basis, oil prices would need to hit about 90 dollars a barrel to match the highs of 25 years ago. What is the main idea of news item five? The FTSE 100 Index was in the red for the third consecutive session as traders fretted over sharp falls in stocks across the Atlantic
Second listening:listen for specific information In this part the teacher has great freedom and flexibility to ask students questions,to clarify any difficult language points,to add in supplementary materials as background knowledge or in-depth understanding of the listening materials. Notice the following expressions. Dilemma,stick,threshold,levy,water down,spike,hit Ask students to do multiple matching exercise and blanks filling excercise.Compare answers.Explain the keys. Third listening:sentences imitation Ask students to use the following active vocabularies to form sentences as what they have heard from listening(Dictate then remember). 1.dilemma--Could the Bank of England face a similar policy dilemma to that of the European Central Bank. 2.stick--Confronted by sticky consumer price inflation,the ECB has felt unable to cut interest rate for more than two years. 3.threshold--While welcoming the amendment in principle,many members of the Standing Committee of the 10th National People's Congress,China's top legislature called for the threshold to be raised even higher to benefit more low earners. 4.levy--A proposed amendment raising the threshold at which personal income is levied has met with a mixed response from national legislators in China. 5.water down--A group of small EU countries are seeking to water down some of the key proposals in G8 debt relief deal agreed last week by G8 leaders at Gleneangles,leaked documents have revealed. 6.spike--Crude oil prices hit a record 68 dollars a barrel after the US reported a decline in petrol stocks and China said its crude imports spiked in July,as strong demand on the mainland shows no signs of easing. 7.hit--On an inflation-adjusted basis,oil prices would need to hit about 90 dollars a barrel to match the highs of 25 years ago. Part B First listening:listen for the gist What is the main idea of this listening? The passage mainly discusses how the Fed deals with "exuberance"with the interest rate policy,and experiences of Alan Greenspan in this respect. Second listening:listen for specific information In this part the teacher has great freedom and flexibility to ask students questions,to clarify any difficult language points,to add in supplementary materials as background knowledge or in-depth understanding of the listening materials
Second listening: listen for specific information In this part the teacher has great freedom and flexibility to ask students questions, to clarify any difficult language points, to add in supplementary materials as background knowledge or in-depth understanding of the listening materials. Notice the following expressions. Dilemma, stick, threshold, levy, water down, spike, hit Ask students to do multiple matching exercise and blanks filling excercise. Compare answers. Explain the keys. Third listening: sentences imitation Ask students to use the following active vocabularies to form sentences as what they have heard from listening (Dictate then remember). 1. dilemma-- Could the Bank of England face a similar policy dilemma to that of the European Central Bank. 2. stick-- Confronted by sticky consumer price inflation, the ECB has felt unable to cut interest rate for more than two years. 3. threshold-- While welcoming the amendment in principle, many members of the Standing Committee of the 10th National People's Congress, China's top legislature called for the threshold to be raised even higher to benefit more low earners. 4. levy-- A proposed amendment raising the threshold at which personal income is levied has met with a mixed response from national legislators in China. 5. water down-- A group of small EU countries are seeking to water down some of the key proposals in G8 debt relief deal agreed last week by G8 leaders at Gleneangles, leaked documents have revealed. 6. spike-- Crude oil prices hit a record 68 dollars a barrel after the US reported a decline in petrol stocks and China said its crude imports spiked in July, as strong demand on the mainland shows no signs of easing. 7. hit-- On an inflation-adjusted basis, oil prices would need to hit about 90 dollars a barrel to match the highs of 25 years ago. Part B First listening: listen for the gist What is the main idea of this listening? The passage mainly discusses how the Fed deals with “exuberance” with the interest rate policy, and experiences of Alan Greenspan in this respect. Second listening: listen for specific information In this part the teacher has great freedom and flexibility to ask students questions, to clarify any difficult language points, to add in supplementary materials as background knowledge or in-depth understanding of the listening materials
Notice the following expressions. irrational exuberance,burst a bubble,unsustainable surge,core mandate,"mopping up"strategy,substantial economic contraction,froth,sanguine,consumption binge Ask students to fill in the blanks.Compare answers. Ask students to answer the following questions.Compare answers.. Third listening:sentence imitation Ask students to use the following active vocabularies to form sentences as what they have heard from listening(Dictate then remember). 1.irrational exuberance --In December 1996,when Alan Greenspan made his famous comment on the possibility of"irrational exuberance"in stock prices,the Dow Jones industrial average stood at 6,400. 2.burst a bubble--The Fed should not try to burst a bubble by raising interest rate when the outlook does not demand it. 3.unsustainable surge--Mr.Greenspan's view is based partly on the difficulty,for central bankers,of spotting the difference between an unsustainable surge in prices based on speculation and a sustainable one based on fundamentals. 4.core mandate--If a market shift threatens the core mandate,its job is to deal with the consequences. 5."mopping up"strategy--Alan Blinder,the Princeton professor who is giving a paper on the Greenspan era at this week's Jackson Hole symposium,calls this the Feds“mopping up”strateg. 6.substantial economic contraction --It is far from obvious that bubbles,even if identified early,can be pre-empted at lower cost than a substantial economic contraction and possible financial destabilization-the very outcomes we are seeking to avoid. 7.froth--Part of the next Fed chairman's inheritance will be a housing market that Mr.Greenspan has said is showing signs of"froth"in a number of cities. 8.sanguine--Henry Kaufman,the Wall Street economist,believes the FOMC is too sanguine. 9.consumption binge--The Fed's assurances that it will raise rates at a "measured" pace have contributed to a household debt-financed consumption binge and to speculative activity by investors. Part C First listening:listen for the gist What is the main idea of this listening? Although the world economy faces dangers,traditional policy instruments seem unable to get rid of them
Notice the following expressions. irrational exuberance, burst a bubble, unsustainable surge, core mandate, “mopping up” strategy, substantial economic contraction, froth, sanguine, consumption binge Ask students to fill in the blanks. Compare answers. Ask students to answer the following questions. Compare answers. . Third listening: sentence imitation Ask students to use the following active vocabularies to form sentences as what they have heard from listening (Dictate then remember). 1. irrational exuberance -- In December 1996, when Alan Greenspan made his famous comment on the possibility of “irrational exuberance” in stock prices, the Dow Jones industrial average stood at 6,400. 2. burst a bubble -- The Fed should not try to burst a bubble by raising interest rate when the outlook does not demand it. 3. unsustainable surge -- Mr. Greenspan’s view is based partly on the difficulty, for central bankers, of spotting the difference between an unsustainable surge in prices based on speculation and a sustainable one based on fundamentals. 4. core mandate -- If a market shift threatens the core mandate, its job is to deal with the consequences. 5. “mopping up” strategy -- Alan Blinder, the Princeton professor who is giving a paper on the Greenspan era at this week’s Jackson Hole symposium, calls this the Fed’s “mopping up” strategy. 6. substantial economic contraction -- It is far from obvious that bubbles, even if identified early, can be pre-empted at lower cost than a substantial economic contraction and possible financial destabilization – the very outcomes we are seeking to avoid. 7. froth -- Part of the next Fed chairman’s inheritance will be a housing market that Mr. Greenspan has said is showing signs of “froth” in a number of cities. 8. sanguine -- Henry Kaufman, the Wall Street economist, believes the FOMC is too sanguine. 9. consumption binge -- The Fed’s assurances that it will raise rates at a “measured” pace have contributed to a household debt-financed consumption binge and to speculative activity by investors. Part C First listening: listen for the gist What is the main idea of this listening? Although the world economy faces dangers, traditional policy instruments seem unable to get rid of them
Second listening:listen for specific information In this part the teacher has great freedom and flexibility to ask students questions,to clarify any difficult language points,to add in supplementary materials as background knowledge or in-depth understanding of the listening materials. Notice the following expressions. record surpluses,underlying structural factors,demographic trends,dearer,dampen,trim,cooling, jam,equilibrating force,curb,anchor,service,broken circuit,sluggish,sprinters,arguably Ask students to do the T/F exercises.Ask them why the statements are true or false.. Ask students to answer the questions and make comments. Third listening:sentence imitation Ask students to use the following active vocabularies to form sentences as what they have heard from listening(Dictate then remember). 1.record surpluses--America's current-account deficit is forecast to widen to over $800 billion this year,while Germany,Japan and China look set to run record surpluses. 2.underlying structural factors--Many economists try to explain these trends in terms of underlying structural factors,such as differences in demographic trends or productivity growth 3.demographic trends--Many economists try to explain these trends in terms of underlying structural factors,such as differences in demographic trends or productivity growth 4.dearer--Dearer money then helps to dampen domestic spending and thus trim the external deficit. 5.dampen--Dearer money then helps to dampen domestic spending and thus trim the external deficit. 6.trim--Dearer money then helps to dampen domestic spending and thus trim the external deficit 7.cooling--Real bond yields rose,cooling domestic demand. 8.jam--This time,however,the adjustment mechanism has jammed. 9.equilibrating force--Patrick Artus,chiefeconomist at IXIS,a French investment bank,points to the disappearance of another equilibrating force that would normally help to correct financial imbalances. 10.curb--In the past,a rapid rise in consumer borrowing and spending would cause a central bank to push up interest rates to curb inflation. 11.anchor--Inflationary expectations are well anchored thanks to the credibility of central banks. 12.service--As a result,central banks have been able to hold interest rates below the growth in nominal GDP(the income from which debts must be serviced)for a prolonged period. 13.broken circuit--A third broken circuit is that between interest rates and growth 14.sluggish --Sluggish economies with low inflation require lower real interest rates than economic sprinters 15.sprinters--Sluggish economies with low inflation require lower real interest rates than
Second listening: listen for specific information In this part the teacher has great freedom and flexibility to ask students questions, to clarify any difficult language points, to add in supplementary materials as background knowledge or in-depth understanding of the listening materials. Notice the following expressions. record surpluses, underlying structural factors, demographic trends, dearer, dampen, trim, cooling, jam, equilibrating force, curb, anchor, service, broken circuit, sluggish, sprinters, arguably Ask students to do the T/F exercises. Ask them why the statements are true or false.. Ask students to answer the questions and make comments. Third listening: sentence imitation Ask students to use the following active vocabularies to form sentences as what they have heard from listening (Dictate then remember). 1. record surpluses -- America's current-account deficit is forecast to widen to over $800 billion this year, while Germany, Japan and China look set to run record surpluses. 2. underlying structural factors -- Many economists try to explain these trends in terms of underlying structural factors, such as differences in demographic trends or productivity growth. 3. demographic trends -- Many economists try to explain these trends in terms of underlying structural factors, such as differences in demographic trends or productivity growth. 4. dearer -- Dearer money then helps to dampen domestic spending and thus trim the external deficit. 5. dampen -- Dearer money then helps to dampen domestic spending and thus trim the external deficit. 6. trim -- Dearer money then helps to dampen domestic spending and thus trim the external deficit. 7. cooling -- Real bond yields rose, cooling domestic demand. 8. jam -- This time, however, the adjustment mechanism has jammed. 9. equilibrating force -- Patrick Artus, chief economist at IXIS, a French investment bank, points to the disappearance of another equilibrating force that would normally help to correct financial imbalances. 10. curb -- In the past, a rapid rise in consumer borrowing and spending would cause a central bank to push up interest rates to curb inflation. 11. anchor -- Inflationary expectations are well anchored thanks to the credibility of central banks. 12. service -- As a result, central banks have been able to hold interest rates below the growth in nominal GDP (the income from which debts must be serviced) for a prolonged period. 13. broken circuit -- A third broken circuit is that between interest rates and growth 14. sluggish -- Sluggish economies with low inflation require lower real interest rates than economic sprinters 15. sprinters -- Sluggish economies with low inflation require lower real interest rates than
economic sprinters. 16.arguably--Yields are arguably too low for America,but too high for Germany and Japan, causing the growth gap to persist
economic sprinters. 16. arguably -- Yields are arguably too low for America, but too high for Germany and Japan, causing the growth gap to persist