商务英语综合教程下册课件房玉靖主编 ISBN9787810789707Unit 10 The Monetary FocusII Bang for the Buck.ppt

Unit Ten Introduction Central Banks around the world have been regulating their monetary policy weapons recently in an effort to combat a widely expected economic recession. This essay mainly discusses the changes of American dollars. Text 1 As evidence mounts that America’s stumbling economy has fallen down, Washington is abuzz with efforts to get it back on its feet. Figures released on September 25th show that consumer confidence fell to a five-year low in September, the biggest monthly drop since Saddam Hussein invaded Kuwait in 1990. With layoffs rising fast while profits plunge, things could get much worse. 9 A popular idea for boosting consumption quickly is another tax rebate. This would be based on the payroll tax and targeted at poorer Americans, many of whom earned too little to receive an income tax rebate earlier this year, and who tend to spend the highest proportion of their income. Gene Sperling, one of President Clinton’s top economic advisers who is now at the Brookings Institution, suggests a “Christmas Holiday Shopping Tax Credit” of, say, $300 each for the bottom 60m—70m tax-payers. 10 But would this cash really be spent? Economists reckon that people change their spending patterns in response to permanent tax cuts, not temporary ones. Even the income tax rebate earlier this year was part of a package of permanent cuts. And while analysis of previous rebates suggests that people end up spending between one-third and two-thirds of the money, early evidence suggests the proportion this year may be much lower. Joel Slemrod of the University of Michigan cites a survey in August that showed that only17% of the people intended to spend the income tax rebate they were granted earlier this year. Worryingly, poorer people were less keen to spend the money than richer ones. 1. As evidence mounts that America’s stumbling economy has fallen down, Washington is abuzz with efforts to get it back on its feet. 2. p