1. HW check Pls, submit: Report – task 4 (RB, p 26) RB, p 34 – Task III 1.In 2002 Someland’s exports declined by $18bn. Someland’s exports dropped from $73bn to $55bn. 2. Between 2003 and 2004 Someland’s exports stagnated / stood still at $55bn. 3. In 2004, Someland’s exports gradually increased. 4. In the next year, we recorded a rise of 20% in Someland’s exports. 5. Until June 2006, Someland’s exports plummeted by $53bn.

2. Practice: Fill in the missing prepositions  Handout: Prices of crude oil 1 since 2 to 3 at 4 by 5 --- 6 --- 7 of 8 to 9 around10 of11 by12 to

3. Central banking

4. Central banking functions Listening: RB, p 61

5. 1a Listening The functions of a central bank: 1) Implementing monetary policy 1a) setting interest rate ceilings and floors 1b) printing money or destroying it 1c) open-market operations 2) Exchange rate supervision 3) Commercial banking supervision 4) Act as a lender of last resort Read the text carefully, underline words/phrases that seem important/relevant to the topic. Are you sure you understand them? Ask a colleague for help... Do task II

6. 1a Listening I The functions of a central bank: 1) Implementing monetary policy 1a) setting interest rate ceilings and floors 1b) printing money or destroying it 1c) open-market operations 2) Exchange rate supervision 3) Commercial banking supervision 4) Act as a lender of last resort Read the text carefully, underline words/phrases that seem important/relevant to the topic. Are you sure you understand them? Ask a colleague for help... II: A–1b B–1a C–3 D–2 E–4 F–1c

7. US monetary policy according to CBS students (2006) The Federal Reserve (Central bank of Ben Bernanke Chairman of the Federal Reserve Glenn Hubbard Dean of Columbia Business School http://www.youtube.com/watch?v=3u2qRXb4xCU

8. The functions of a central bank 1)Implementing monetary policy 2)Exchange rate supervision (after 1st ppt) 3) Commercial banking supervision 4) Acting as a lender of last resort

9. Central banking: how can monetary policy help the economy? RB, 62-64 II Read the text again and fill in the table. Work in pairs. Hand in a copy of the table. III Present one type of monetary policy to your colleague (A and B) using the framework below. (A – expansionary, B- restrictive) HW: IV Monetary and fiscal policy, p 63-64

10. The functions of a central bank 1)Implementing monetary policy 2)Exchange rate supervision (after 1st ppt) 3) Commercial banking supervision 4) Acting as a lender of last resort

11. Pair up! Treasury Stanko Linić Bank of England Ministar financija Chancellor Ministarstvo financija The Governor Hrvatska narodna banka Georg Osborne Guverner HNB _________ Boris Vujčić

12. Paired up! Treasury Ministarstvo financija Bank of England Hrvatska narodna banka Chancellor Ministar financija The Governor Guverner HNB George Osborne Slavko Linić Mervyn King Boris Vujčić

13. Northern Rock Banking Crises, RB, p 59 Match up the words and definitions below 1 bank run2 shakeout3 the Treasury 4 credit squeeze5 the Chancellor6 solvent Read the introduction – underline unknown words Mortgage lender? Scan the rest of the text and match questions to corresponding paragraphs Read carefully and underline unknown words / parts you do not understand IV Match the following words from the text to corresponding explanations, p 60 (finish for HW)

14. HW (a summary): 1) Finish reading Northern Rock crisis and do all exercises 2) Read Helga’s Bar and find out how Helga (with a little help from her friends) ruined a large part of Someland’s economy 3) RB, pp 63-64 – Task IV (fill in the texts on monetary and fiscal policy)