Strict control of the money supply — preferably in accordance with a simple rule as to how

Much growth would be allowed year by year — as a means for controlling inflation. His view that it is

Not desirable to fine-tune the economy using stabilization policy (an early adherent to the policy

Ineffectiveness theorem) had to a large extent been accepted, but in the world of economic theory

Friedman’s findings were overshadowed by the more elegant route to similar conclusions based on

Rational expectations, and associated with new classical economics.

Vocabulary Notes to Text 4.7.1.5

Controversy — полемика (дискуссия)

To fine-tune — усовершенствовать

An adherent — приверженец, сторонник

Match the following terms with the correct definition

Work with a partner.

Trade barrier

Tariffs, import

Protsa.t4oqu.isce5x teduection

A) The imposition of tarifs, quotas or other devices (nontarifT bariers) to restricthe inflow imports.

5*

D) A general term covering any government limitation on the

Free international exchange of merchandise. These barriers

May take the form of, for instance, tariffs, quotas, import deposits,

Restrictions on the issue of import licences or stringent

Regulations relating to health or safety standards.

E) In international trade the quantitative limits placed on the

Importation of specified commodities.