【正文】 that system to be truly adjustable, but the costs of such controls seem a high price to pay. A freely floating exchange rate, then, appears to be the lesser of three evils. Even economists who are generally profloating agree that tightly integrated regions that form “optimal currency areas” should adopt the ultimate form of fixed exchange rates, a mon currency. (Whether the new eurozone constitutes such an area is another question.) But as a general rule, the preferred alternative of most economists is a floating exchange rate. In particular, it is the one most consistent with the neoclassical synthesis, because it leaves countries free to pursue both freemarket and fullemployment policies. (from Foreign Affairs, January/February 1999) Unit Six The Return of Depression Economics — Paul Krugman Exercises ? Ⅰ . Translate the following into English, using the words or phrases in the text: 1. 使一國(guó)外匯儲(chǔ)備大大減少的資本外逃 capital flight depleting a country’s foreign exchange reserves 2. 貶值所引起的國(guó)內(nèi)惡性通貨膨脹 domestic hyperinflation caused by devaluation 3. 為增加國(guó)民收入而采取擴(kuò)張性財(cái)政政策 to adopt expansionary fiscal policy to increase national ine Unit Six The Return of Depression Economics — Paul Krugman Unit Six The Return of Depression Economics — Paul Krugman 4. 面臨總需求日益萎縮的危險(xiǎn) 5. 受流動(dòng)性陷阱困擾的資本市場(chǎng) capital market harassed by liquidity trap 6. 排除大規(guī)模投機(jī)活動(dòng)的可能性 to rule out the possibility of massive speculative activities 7. 以經(jīng)濟(jì)停滯為代價(jià)來(lái)壓低國(guó)內(nèi)的價(jià)格 to drive down domestic prices at the expense of economic stagnation be faced with the danger of increasingly shrinking aggregate demand Unit Six The Return of Depression Economics — Paul Krugman 8. 以固定匯率為特征的國(guó)際金本位制 9. 熱幣流動(dòng)對(duì)貨幣產(chǎn)生的壓力 the pressure of hot money flow on currencies 10. 以市場(chǎng)自發(fā)調(diào)節(jié)為中心的新古典主義理論 the neoclassical theory centering on the spontaneous adjustments of market 11. 運(yùn)用多種手段來(lái)實(shí)現(xiàn)經(jīng)濟(jì)目標(biāo)的聰明的決策者 intelligent policymakers who will use various means to achieve economic goals the international gold standard system characterized by fixed exchange rates Unit Six The Return of Depression Economics — Paul Krugman 12. 能夠幫助經(jīng)濟(jì)走出蕭條的靈活的財(cái)政、金融政策 13. 發(fā)展中國(guó)家和成熟經(jīng)濟(jì)體所面臨的不同困境 the different dilemmas that the developing countries and the mature economies are faced with 14. 以犧牲充分就業(yè)來(lái)實(shí)現(xiàn)高產(chǎn)出率 to sacrifice full employment to achieve high output rate 15. 會(huì)導(dǎo)致另一國(guó)貨幣貶值的對(duì)這種貨幣的需求增加 the increased demand for this currency that will lead to the devaluation of another currency flexible fiscal and financial policies that can help the economy out of depression Unit Six The Return of Depression Economics — Paul Krugman ? Ⅱ . Translate the following sentences into English: 1. 該國(guó)出現(xiàn)的這場(chǎng)經(jīng)濟(jì)混亂引起了中央銀行和財(cái)政部的互相指責(zé)，該事件反映了一國(guó)的貨幣政策和財(cái)政政策相互配合的重要性。 so do the solutions. We had better all start relearning our Depression economics. Unit Six The Return of Depression Economics — Paul Krugman It’s the Short Run , Stupid BEFORE THE 1930s most economists regarded the business cycle—the alternation of recessions and recoveries—as a relatively minor issue. Whatever the causes of such fluctuations, economists believed that slumps were selfcorrecting and that the economy always tended to restore full employment in the long run. Hence, the fundamental economic problem was to ensure that resources were used efficiently, not to ensure that they were used at all. True, as early as 1923 John Maynard Keynes famously took his colleagues to task, admonishing them not to ignore the short run: Unit Six The Return of Depression Economics — Paul Krugman This long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the sea is flat again. But not until the Great Depression did economists realize that “short run” shortfalls of demand were crucially important. Perhaps slumps were still self correcting in the long run, but would the economy survive to reach that long run? Given the experience of the Depression, one might have thought that classical economics was gone for good. But the success of Keynesian economics in damping down the business cycle meant that the old focus on the full employment long run could reemerge with a new justification. It was once again Unit Six