Central banks and their influence on economic growth has been a recurring theme in IELTS Writing Task 2, appearing approximately 3-4 times annually in recent years. This topic’s frequency suggests its continued relevance for future tests, particularly given the global economic challenges and monetary policy developments. Let’s examine some actual IELTS questions and provide sample essays with detailed analysis.
The influence of monetary policy on economic growth has become increasingly important in recent years, making it essential for IELTS candidates to understand this topic thoroughly.
Question Analysis
Some people believe that central banks should focus primarily on controlling inflation, while others argue they should have broader responsibilities for managing economic growth. Discuss both views and give your opinion.
This question requires:
- Discussion of two contrasting viewpoints
- Clear personal position
- Relevant examples and explanations
- Balanced analysis
Sample Essay 1 (Band 8.5)
The debate over central banks’ primary responsibilities has intensified in recent years, with some advocating for a narrow focus on inflation control while others support a broader mandate including economic growth management. In my view, while inflation control is crucial, central banks should maintain a balanced approach encompassing multiple economic objectives.
Those who support an inflation-centric approach argue that price stability is fundamental to economic health. When inflation is controlled, businesses and individuals can make better long-term decisions, as demonstrated by how central banks respond to inflation. For instance, the European Central Bank’s successful inflation targeting in the early 2000s created a stable environment for business investment and growth.
However, proponents of broader responsibilities emphasize that economic stability requires more than just inflation control. They argue that central banks must consider employment, financial stability, and overall economic growth. The Federal Reserve’s dual mandate, which includes both price stability and maximum employment, has proven effective in maintaining economic balance, particularly during the 2008 financial crisis.
In my opinion, while inflation control should remain a priority, central banks cannot ignore their wider economic impact. The role of central banks today extends beyond simple price control, requiring a comprehensive approach to economic management. This balanced strategy has become especially important in our interconnected global economy.
Sample Essay 2 (Band 6.5)
Central banks have important jobs in the economy. Some people think they should only control inflation, but others want them to do more things. I will discuss both ideas and give my opinion.
People who support inflation control say it is the most important thing. When prices go up too fast, it is bad for everyone. People cannot buy things they need, and businesses cannot plan for the future. For example, when inflation is high, food becomes expensive and poor people suffer.
Other people think central banks should do more than just control inflation. They say banks should help create jobs and make the economy grow. When central banks only focus on inflation, they might forget about other problems like unemployment. This happened in some countries during economic crisis.
I think central banks should do both things. They need to control inflation but also help the economy grow. This is better because the economy has many parts that work together. If central banks only look at inflation, they might miss other important problems.
Band Score Analysis
Band 8.5 Essay:
- Clear and sophisticated argument structure
- Advanced vocabulary usage: “inflation-centric approach,” “fundamental,” “price stability”
- Excellent coherence and cohesion
- Relevant examples and thorough analysis
- Complex sentence structures with accuracy
Band 6.5 Essay:
- Basic but clear argument
- Simple vocabulary with some repetition
- Adequate coherence but less sophisticated linking
- Basic examples without detailed analysis
- Simple sentence structures with occasional errors
Key Vocabulary
- Monetary policy (n) /ˈmʌnɪtəri ˈpɒlɪsi/ – The management of money supply and interest rates
- Inflation targeting (n) /ɪnˈfleɪʃən ˈtɑːɡɪtɪŋ/ – A central banking policy of meeting preset inflation rates
- Price stability (n) /praɪs stəˈbɪlɪti/ – A state of steady price levels in an economy
- Economic mandate (n) /ˌiːkəˈnɒmɪk ˈmændeɪt/ – Official orders or responsibilities given to economic institutions
- Financial stability (n) /faɪˈnænʃəl stəˈbɪlɪti/ – The condition of a stable financial system
In conclusion, this topic remains crucial for IELTS candidates. For practice, try writing essays on related questions such as “Should central banks prioritize national or global economic stability?” or “How effective are interest rates as a tool for economic management?” Share your practice essays in the comments for feedback and discussion.