Vocabulary

Laws of motion – законы движения

Advanced – развитой, прогрессивный

Notion – понятие

Merit – достоинство

Knock out – выбросить

Valid – действительный

Lockjaw – столбняк

THE CHALLENGE OF LORD JOHN MAYNARD KEYNES

Smith's version of the economic system as a naturally self-organizing and self-adjusting «social mechanism» - known latterly as classical or neoclassical economic doctrine (or sometimes, more shortly and perhaps satirically, as orthodox or conventional wisdom) — was never confirmed by factual evidence, as Newton's laws of motion were; all the same, classical doctrine dominated economic thinking and national economic policy in all advanced economies for the next 150 years, and it plays a prominent role in many countries to this day.

Whether right or wrong, classical theory was first seriously challenged by the great English statesman and economist Lord John Maynard Keynes, who claimed to see in the Great Depression of the 1930s evidence that the economic system was not self-adjusting, and whose followers argued that without continued government intervention the economic system would typically operate at levels of activity substantially lower than required to achieve full employment of labor and other resources. Exactly what Keynes said, or what he meant, or what he really meant, has been hotly disputed among economists for more than 50 years, conveying to many noneconomists the notion that economists as a group are uniquely quarrelsome and doubtfully competent. There is no merit in this notion. What is true, as the great English economist Joan Robinson once observed, is that «in a subject where there is no agreed procedure for knocking out error, doctrine has long life».

Perhaps time and further study will some day reveal whether the classical or the Keynesian conception of economic life accords more closely with experience.

Meanwhile, the great worry is that, in the absence of professional competence to make valid diagnoses, we will treat cases of economic toothache as cases of lockjaw and kill our patient: or, no less seriously, we will leave apparently minor economic lumps untreated and so, through inaction, fail to cure problems that turn out to be terminal. On a brighter note we may recall Lord Keynes's wistful observation: «If economists could someday manage to get themselves thought of as humble, competent people, on a level with dentists, that would be splendid!» Perhaps that time will one day come. If it does, and if economists are then able accurately to diagnose and prescribe cures for economic ills, they will have little reason to feel humble».

II. Ответьте на следующие вопросы:

1. What is a classical economic doctrine?

2. What does the author say about Newton's and Smith's laws or doctrines?

3. Who first challenged the classical economics? When was that? Under what circumstances?

4. What were Keynes' and his followers' arguments against the self-adjusting market doctrine?

5. How had the noneconomists' opinion changed toward the economist? How does the author comment that common opinion?

6. According to the author, which concept or doctrine accords more closely with experience?

7. What is author's «great worry»?

8. Why should economists feel «humble»?

III. Какое из следующих утверждений является правильным:

A. Smith's version of the economic system was proved to be right for the advanced economies.

B. Keynes challenged both classical and neoclassical economic doctrines.

C. Lord John Maynard Keynes was not alone in his be­liefs.

D. The reason why Smith's theory of self-organizing and self-adjusting «social mechanism» had been criticized was the Great Depression of the 1930s.

E. According to the Keynes and his colleagues, continued government intervention is necessary to achieve required employment of labour and other positive results.

F. Keynes works were proved to be true and that was the reason why no one disputed them during the following 50 years.

G. Keynes himself wasn't really sure that economics is an accurate science.

H. Keynes thought that dentists are more competent eco­nomists than Adam Smith followers.

СПИСОК РЕКОМЕНДУЕМОЙ ЛИТЕРАТУРЫ

1. Агабекян, И.П. Английский для экономистов./ И. П. Агабекян, П.И. Коваленко. – Ростов н/Д : Феникс, 2002. – 416 с.

2. Дубинина, Г.А. Английский язык: пособие для вузов / Г.А. Дубинина, И.Ф. Драчевский. – М. : Экзамен, 2002. – 160 с.

3. Глушенкова, Е.В. Английский язык для студентов экономических специальностей: учебник / Е.В. Глушенкова, Е.Н. Комарова. – М. : АСТ, Астрель, 2002. – 352 с.

4. Encarta Encyclopedia

Приложение

Федеральное агентство по образованию

Государственное образовательное учреждение

высшего профессионального образования

Кольский филиал Петрозаводского государственного университета

Кафедра иностранных языков

Дисциплина «Английский язык»

Контрольная работа № ____ Вариант №___

студента __ курса

(группа № _________)

экономического факультета

заочного отделения

специальность ________________________________