The power of a dollar.
The topic for today is ‘’ inflation’’.
Task 1
Read the text below to get the general idea:
A dollar, once a strong and stable currency, is no longer as powerful as it
used to be in the past. Nowadays, a one dollar banknote is worth less than it was
a few decades ago. It means that at present every dollar will buy a smaller
percentage of a good. In other words, the purchasing power of 1$ is weaker
than before. This phenomenon is called ‘inflation’.
By definition, ‘inflation’ is the rate at which prices of goods and services
are rising in comparison with falling purchasing power of a national currency.
For example, if the inflation rate in a country is said to be 2%, then a $1 pack
of chewing gum will cost $1.02 in a year. On the other hand, after inflation one
dollar cannot buy the same amount of goods or services as beforehand.
Economists claim that inflation affects economy in various ways, both
positive and negative, but for average people rising prices always mean
dissatisfaction. Whenever prices go up, people start complaining because their
salaries usually remain constant and, in fact, they have less money to buy fewer
things. It is said that inflation can reduce unemployment, but only in short terms,
because it increases the demand for labour. If there is inflation, the central bank
may start manipulating the interest rates to stimulate economy, what might be
again beneficial to the entire economy. Today most experts favour a moderate
and steady rate of inflation, since they believe that it enables the labour market
to adjust easier to real demands of the economy. What is more, the existence of
inflation is perceived by most specialists as a sign of economic growth.
In recent years most countries have managed to sustain low rates of
inflation, with Poland reaching the record level of -0.90% in May this year. It
would be great, however, if our salaries in Poland were rising at a slightly
quicker pace, reaching at least European standards. That, unfortunately, still
remains, for most of us, an unfulfilled dream.
Task 2.
Study the text carefully and use the words in brackets in correct verb forms:
1. According to the Central Statistical Office in Warsaw, the inflation rate in
May this year in Poland (reach) …has reached… the record level of 0.90%.
2. The government is planning to (increase) …increase… taxes on tobacco
and alcohol next year.
3. It is said that Internet charges (reduce)…will be reduced… in the future
due to international price regulations.
4. Nowadays people (buy) …are buying… more and more consumer goods
than they can actually afford.
5. The number of local polling stations (remain) …remained… the same as
during national elections four years ago.
6. Environmentalists say that severe climatic changes (affect) …will have
affected… the environment considerably by the end of 2030.
7. The growth of small and middle-sized companies in Poland (stimulate)
…was stimulated.. significantly by political transformations which began
in the early 1990s.
8. Constantly (rise) …rising… prices of petrol are responsible for the
substantial increase of transportation costs in the majority of European
countries.
9. Conference equipment and hotel amenities (adjust) …had been
adjusted… to special needs of individual participants long before the
invitations were sent to companies.
10.If we (buy) …had bought… the shares earlier, we would have made
more money then, but unfortunately we didn’t.
Task 3.
Watch the video ‘’ What is … ? ’’ and complete the sentences below with
missing words:
https://www.youtube.com/watch?v=XwhFAuBSl9g
1. Dave intends to buy a beautiful 1978 Ford Pinto for 24.000 $, which is
…barely… used.
2. To buy his dream car, David would have to ….. save… money for 3
years.
3. The historical ….annual… inflation in the USA is said to be 3% on
average.
4. Adding inflation, the total price of Dave’s car would ….jump… to
more than 26.000 $.
5. Due to inflation, Dave’s money will be in fact …worth… less in the
future.
6. Dave’s assets should …outpace… the rate of inflation if he wants to
be successful.
7. If Dave doesn’t grow his assets, inflation will soon …gobble… them
up totally.
8. The best method to overcome inflation is to …invest… money in stock
or real estate.
9. Making investments in money markets can also help …beat…
inflation.
10.Historically, the stock has earned a …premium… of 6.6% over
inflation overtime.