10 Key economic terms defined

The Federal Reserve’s Open Market Committee announcements and news reports about the committee frequently contain terminology that may not be familiar to many readers.

1. Bias

One tool the Fed has to fight inflation is loosening or tightening the reins on short-term interest rates. The Fed maintains a tightening bias if it perceives inflation to be a risk to the overall health of the economy. Similarly, it could maintain a loosening bias if the greater risk is a slowdown in economic growth. If the Fed believes a proper balance is being maintained, its bias is said to be neutral.

2. Discount rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve bank’s lending facility – the discount window.

3. Federal funds target rate

The short-term interest rate that banks charge other banks to borrow money overnight at the Federal Reserve. The actual rate, or effective rate, changes daily and may be above or below the targeted rate. The FOMC sets the rate at its regularly scheduled meetings but may opt to change it between meetings should economic conditions warrant a change.

4. Gross domestic product, or GDP

The market value of goods and services produced by labor and property in the United States. It is the primary measure of U.S. production.

5. Inflation

The upward spiraling of the prices of goods and services, most often rising out of sync with consumer purchasing power. The Fed looks at overall inflation as it’s measured by the consumer price index, or CPI, and at core inflation, which is the CPI minus food and energy prices.

6. Monetary policy

Action undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy. The three tools of monetary policy are open market operations, reserve requirements and the discount rate.

7. Open market operations

Open market operations are the Federal Reserve’s principal tool for implementing monetary policy, which is achieved by purchasing and selling U.S. Treasury and federal agency securities. The short-term objective for open market operations is specified by the Federal Open Market Committee, or FOMC. This objective can be a desired quantity of reserves or a desired price (the federal funds rate). The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.

8. Personal Consumption Expenditure, or pce

A measure of the goods and services purchased by consumers.

9. Prime rate

The interest rate banks charge their best customers, meaning businesses. It is almost always 3 percent above the federal funds target rate. Banks set this rate based on loan demand and other factors.

10. Reserve requirements

The amount of funds that a depository institution must hold in reserve against specified deposit liabilities. Within limits specified by law, the Board of Governors has sole authority over changes in reserve requirements. Depository institutions must hold reserves in the form of vault cash or deposits with Federal Reserve Banks.

Bankrate.com

Текст 3.

СТРУКТУРА ЭКОНОМИКИ РОССИИ

В структуре экономики России преобладает сектор услуг (торговля, транспорт, рестораны, гостиницы, связь, финансовая деятельность, операции с недвижимым имуществом, государственное управление, безопасность, образование, здравоохранение, прочие услуги) – более 56,7 % структуры добавленной стоимости в 2007 году (в ВВП – 48,6%). Кроме того, есть ещё обрабатывающая промышленность (пищевая промышленность, текстильное и швейное производство, производство изделий из кожи, производство обуви, обработка древесины, производство из дерева, целлюлозно-бумажное производство, издательская деятельность, полиграфическая деятельность, производство кокса и нефтепродуктов, химическое производство, производство резиновых и пластмассовых изделий, производство прочих неметаллических минеральных продуктов, металлургическое производство, производство машин и оборудования, производство электрооборудования, производство электронного и оптического оборудования, производство транспортных средств и оборудования, прочие производства) – 19,1% структуры добавленной стоимости (16,4% ВВП), на добычу полезных ископаемых приходится всего 10,4% структуры добавленной стоимости (9,0% ВВП). Строительство составляет всего 5,9% структуры добавленной стоимости (5,1% ВВП); сельское, лесное хозяйство и рыболовство составляют в сумме 4,5 % структуры добавленной стоимости (4,5% ВВП России). Наименьшую долю в структуре добавленной стоимости занимает производство и распределение электроэнергии, газа и воды – 3,1% (2,7 % ВВП). На чистые налоги на продукты приходится 14,2% ВВП.

Среди всех отраслей промышленности России наиболее сильными, по отношению к 1991 году, выглядят: производство электрооборудования, электронного и оптического оборудования, химическое производство, обрабатывающие производства, а также прочие производства, добыча топливно-энергетических полезных ископаемых; целлюлозно-бумажное производство (лесные ресурсы России – крупнейшие в мире); издательская и полиграфическая деятельность; металлургическое производство и производство готовых металлических изделий; производство и распределение электроэнергии, газа и воды (по данным до 2006 года)

Экономическое деление

В настоящее время отсутствует. Законодательно закреплено только административное деление на федеральные округа. Советская Россия делилась на одиннадцать крупных экономических районов: Северо-Западный, Северный, Центральный, Волго-Вятский, Центрально-Чернозёмный, Поволжский, Северо-Кавказский, Уральский, Западно-Сибирский, Восточно-Сибирский и Дальневосточный.

Добыча нефти и газа сосредоточена в Западной Сибири, гидроэлектростанции, цветная металлургия и лесная промышленность – в Восточной Сибири. Дальний Восток выделяется добычей золота, алмазов, рыбы и морепродуктов. В Северном районе к основным отраслям относятся добыча угля, нефти, газа, апатитов, никеля и других металлов, а также заготовка леса и добыча рыбы. Северо-Западный, Центральный, Волго-Вятский, Уральский и Поволжский районы выделяются развитым машиностроением, химической, лёгкой, пищевой промышленностью, энергетикой и сферой услуг. Центрально-Чернозёмный район и Северный Кавказ имеют развитое сельское хозяйство и пищевую промышленность.

ru.wikipedia.org/wiki/Экономика_России

Текст 4.

ECONOMY: RUSSIA

Gross Domestic Product

Tighter credit, collapsing global demand, global uncertainty, and rising unemployment have hurt investment and consumption in Russia (which have been the main drivers of GDP growth in recent years). GDP growth and industrial production for 2008 were 5.6% and 2.1%, respectively, compared to 8.1% and 6.3% in 2007, according to the World Bank. However, GDP growth in the first seven months of 2008 was 7.7% on average before collapsing in the fourth quarter. GDP in the first quarter of 2009 contracted by over 7% and growth estimates for the year range from the Russian Government’s -2.2 % to the IMF’s -6%. GDP growth is currently derived from non-tradable sectors, but investment remains concentrated in tradables (oil and gas). Over the course of 2008, tradables, including manufacturing, showed lower growth rates than non-tradables, such as retail and construction. Manufacturing was hit severely in the last two months of 2008, contracting by 10.3% in November and 24.1% in January 2009, compared to the prior year, due to tight credit and free fall of demand. By January 2009, construction experienced an 18% year-on-year decline. Real disposable incomes, which grew by 10.4% in 2007, dropped 6.7% in January 2009, which led to negative 2.4% retail trade growth in February.

Government Spending/Taxation

The Russian federal budget ran growing surpluses from 2001-2007, as the government taxed and saved much of the rapidly increasing oil revenues. The government overhauled its tax system for both corporations and individuals in 2000-2001, introducing a 13% flat tax for individuals and a unified tax for corporations, which improved overall collection. Responding to demands from the oil sector, the government reduced the tax burden on oil production and exports, but only marginally. Tax enforcement of disputes continues to be uneven and unpredictable. In 2007 the federal budget surplus was 5.5% of GDP, and in 2008 the government ended the year with a surplus of 4.1% of GDP. However, the 2009 budget was revised with an oil price assumption of $41 per barrel Urals, and the government expects a 7.5% deficit, which will be financed from the Reserve Fund, the larger of the government’s two stabilization funds. The government’s anti-crisis package in 2008 and 2009 are worth about 6.7% of GDP, according to World Bank estimates. Measures focus on supporting the financial sector and enterprises, through liquidity injections to banks and tax cuts/fiscal support to enterprises, entities that were hit first by the crisis, with modest support for households, small and medium enterprises (SMEs), and increased unemployment benefits. More expenditures will be likely if the crisis deepens or is prolonged.