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UNIT 4
INFLATION AND DEFLATION
An inflationary development is characterized by rising prices within a certain
period of time.
The rising prices is a consequence of an uneven development in the quantity
of goods on offer and the quantity of money available, which is self determines the
demand and is the inflation rate.
The causes of inflation are generally complex and can arise either from the
goods or from the monetary side.
The consequences of inflation are extremely damaging for the economy. In-
flation becomes stagflation when economic growth decreases or comes to a halt,
but inflation continues to rise.
If the state does not take measures to combat stagflation, this leads to defla-
tion.
Deflation, the opposite development to inflation, represents a reduction in the
supply of money in comparison with the supply of goods.
Vocabulary
deflation дефляция
consequence следствие
even равномерный
uneven неравномерный
available наличный
to determine определять
rate уровень
inflation rate уровень инфляции
cause причина
complex сложный
to arise(arose ,arisen) возникать
damage ущерб, вред
to damage наносить ущерб, вред
damaging наносящий вред
stagnation стагнация
to decrease уменьшать(ся)
halt остановка
to come to a halt приходить к остановке,
остановиться
state государство
to take measures принимать меры
to combat бороться
to reduce уменьшать(ся)
reduction уменьшение
supply снабжение, предложение
to supply снабжать
UNIT 4 INFLATION AND DEFLATION An inflationary development is characterized by rising prices within a certain period of time. The rising prices is a consequence of an uneven development in the quantity of goods on offer and the quantity of money available, which is self determines the demand and is the inflation rate. The causes of inflation are generally complex and can arise either from the goods or from the monetary side. The consequences of inflation are extremely damaging for the economy. In- flation becomes stagflation when economic growth decreases or comes to a halt, but inflation continues to rise. If the state does not take measures to combat stagflation, this leads to defla- tion. Deflation, the opposite development to inflation, represents a reduction in the supply of money in comparison with the supply of goods. Vocabulary deflation дефляция consequence следствие even равномерный uneven неравномерный available наличный to determine определять rate уровень inflation rate уровень инфляции cause причина complex сложный to arise(arose ,arisen) возникать damage ущерб, вред to damage наносить ущерб, вред damaging наносящий вред stagnation стагнация to decrease уменьшать(ся) halt остановка to come to a halt приходить к остановке, остановиться state государство to take measures принимать меры to combat бороться to reduce уменьшать(ся) reduction уменьшение supply снабжение, предложение to supply снабжать 30
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