Central bank policy and its impact on inflation is a crucial economic topic that frequently appears in IELTS Writing Task 2 essays. Based on analysis of past exams and current trends, this subject is likely to remain relevant in future tests. Let’s examine a real IELTS question on this theme and explore sample essays for different band scores.
Some people think that the central bank should control the impact of inflation on a country’s economy. Others believe that the government should take this responsibility. Discuss both views and give your own opinion.
Analyzing the Question
This question requires candidates to discuss two contrasting views on managing inflation:
- The central bank should control inflation’s impact
- The government should be responsible for controlling inflation
Candidates must explore both perspectives and provide their own opinion. A balanced approach discussing both sides before presenting a clear stance is crucial for a high band score.
Sample Essay 1 (Band 8-9)
Inflation management is a critical aspect of economic policy, with debate surrounding whether central banks or governments should take primary responsibility. This essay will examine both viewpoints before presenting my own perspective on this complex issue.
Proponents of central bank control argue that these institutions possess the expertise and independence necessary to effectively manage inflation. Central banks can utilize monetary policy tools such as interest rate adjustments and open market operations to influence money supply and credit conditions. This approach allows for rapid, technocratic responses to inflationary pressures without political interference. For instance, the Federal Reserve’s actions during the 2008 financial crisis demonstrated how central banks can swiftly implement measures to stabilize prices and maintain economic stability.
Conversely, those advocating for government responsibility contend that elected officials should oversee inflation management as part of broader economic policymaking. Governments can employ fiscal policy measures, such as taxation and public spending, to complement monetary policy efforts. This holistic approach ensures that inflation control aligns with other economic objectives and social priorities. Additionally, government involvement may enhance democratic accountability in economic decision-making, as elected representatives are directly answerable to the public.
In my opinion, a collaborative approach between central banks and governments is most effective in managing inflation’s impact. While central banks should retain operational independence in implementing monetary policy, governments play a crucial role in setting overall economic goals and coordinating fiscal policies. This partnership allows for a comprehensive strategy that addresses both short-term price stability and long-term economic growth objectives.
In conclusion, the responsibility for controlling inflation’s impact should be shared between central banks and governments. By leveraging the strengths of both institutions, countries can develop robust and flexible approaches to inflation management that serve the broader interests of their economies and citizens.
Central bank policy impact on inflation
Sample Essay 2 (Band 6-7)
Inflation is a big problem for many countries, and there are different ideas about who should control it. Some people think the central bank should do it, while others believe the government should be in charge. I will discuss both sides and give my opinion.
The central bank has special tools to manage inflation. They can change interest rates and do other things to control how much money is in the economy. This can help keep prices stable. For example, if inflation is too high, the central bank can increase interest rates to make borrowing more expensive. This can slow down spending and help reduce inflation. Central banks are also independent, which means they can make decisions without political pressure.
On the other hand, some people think the government should control inflation. Governments can use things like taxes and spending to affect the economy. They can also make laws that help keep prices stable. Some people believe that because the government is elected by the people, they should be responsible for important economic decisions like controlling inflation.
In my opinion, both the central bank and the government have important roles in managing inflation. I think they should work together to create the best policies. The central bank can focus on using its special tools, while the government can use its powers to support these efforts and make sure the economy is healthy overall.
To conclude, controlling inflation is a complex task that requires both the expertise of the central bank and the broader economic management of the government. By working together, they can create better solutions to keep prices stable and help the economy grow.
Government's role in controlling inflation
Sample Essay 3 (Band 5-6)
Inflation is when prices go up in a country. Some people think the central bank should control it, but others say the government should do it. I will talk about both ideas and give my thoughts.
The central bank is good at controlling money. They can change interest rates to make people save more or spend less. This can help stop prices from going up too fast. Central banks are separate from the government, so they can make decisions without politics getting in the way.
But some people think the government should control inflation. Governments can use taxes and spending to change how the economy works. They can also make rules to help keep prices steady. Some people say that because we vote for the government, they should be in charge of big money decisions.
I think both the central bank and the government are important for controlling inflation. They should work together to make good plans. The central bank can use its special tools, and the government can help with other parts of the economy.
In conclusion, controlling inflation is hard and needs both the central bank and the government. If they work together, they can keep prices steady and help the country’s economy.
Explaining the Band Scores
Band 8-9 Essay:
- Fully addresses all parts of the task with a well-developed response
- Presents a clear position throughout the essay
- Uses a wide range of vocabulary with very natural and sophisticated control
- Uses a wide range of structures with full flexibility and accuracy
- Ideas are coherent and logically organized with effective use of cohesive devices
Band 6-7 Essay:
- Addresses all parts of the task, though some parts may be more fully covered than others
- Presents a relevant position, though the conclusions may become unclear or repetitive
- Uses an adequate range of vocabulary for the task with some errors in word choice
- Uses a mix of simple and complex sentence forms with some errors that do not impede communication
- Information and ideas are generally well organized with some use of cohesive devices
Band 5-6 Essay:
- Addresses the task only partially; the format may be inappropriate in places
- Expresses a position but development is not always clear
- Uses limited range of vocabulary; errors in word choice may cause some difficulty for the reader
- Uses limited range of structures with some attempts at complex sentences
- Presents information with some organization but there may be lack of overall progression
Comparison of inflation control strategies
Key Vocabulary to Remember
- Inflation (noun) – /ɪnˈfleɪʃən/ – A general increase in prices and fall in the purchasing value of money
- Central bank (noun) – /ˈsentrəl bæŋk/ – The main bank in a country that controls that country’s money and banking system
- Monetary policy (noun) – /ˈmʌnɪtəri ˈpɒləsi/ – The actions of a central bank to regulate the money supply and interest rates
- Fiscal policy (noun) – /ˈfɪskəl ˈpɒləsi/ – The use of government spending and taxation to influence the economy
- Interest rates (noun) – /ˈɪntrəst reɪts/ – The proportion of a loan that is charged as interest to the borrower
- Economic stability (noun) – /ˌiːkəˈnɒmɪk stəˈbɪləti/ – A situation in which an economy experiences consistent growth and low inflation
- Quantitative easing (noun) – /ˈkwɒntɪtətɪv ˈiːzɪŋ/ – An unconventional monetary policy in which a central bank purchases government securities to lower interest rates and increase the money supply
- Price stability (noun) – /praɪs stəˈbɪləti/ – A state of the economy in which the general price level is stable or rising at a very low rate
In conclusion, understanding the relationship between central bank policies and inflation is crucial for success in IELTS Writing Task 2. The sample essays provided demonstrate how to approach this topic at different band levels. To further improve your skills, consider practicing with similar topics such as impact of government bonds on inflation or how central bank decisions influence stock markets. Remember to analyze the question carefully, structure your essay logically, and use appropriate vocabulary and examples to support your arguments. Feel free to share your practice essays in the comments section for feedback and discussion.