Casa ESL · C1 Advanced · Unit 2 of 20 · Step 1

Global Economics

Complex Passive Constructions

Produce and interpret complex passive constructions in formal and academic contexts
Use impersonal passive structures to report opinions and beliefs
Discuss global economic issues using appropriately formal register

Name

Date

fiscal

adjective

Relating to government revenue, especially taxation and public spending.

"The government's fiscal policy has come under intense scrutiny."

austerity

noun

Difficult economic conditions created by government measures to reduce public expenditure.

"Years of austerity have taken a heavy toll on public services."

inflationary

adjective

Tending to cause or relating to a general increase in prices.

"The central bank warned of inflationary pressures in the housing market."

remittance

noun

A sum of money sent in payment, especially by migrants to their home country.

"Remittances now account for a significant portion of the country's GDP."

deregulation

noun

The removal of regulations or restrictions, especially in a particular industry.

"Financial deregulation in the 1980s transformed the banking sector."

stagnation

noun

A lack of activity, growth, or development in an economy.

"Prolonged economic stagnation has led to widespread disillusionment."

sovereign

adjective

Relating to a nation's supreme power or authority, especially regarding debt.

"The country's sovereign debt rating was downgraded for the third time."

quantitative easing

phrase

A monetary policy whereby a central bank purchases government securities to increase the money supply.

"Quantitative easing was deployed as an emergency measure during the financial crisis."

Complex passive constructions

Advanced passive constructions go beyond simple 'was done' forms. Impersonal passives report beliefs without attributing them to specific people: 'It is widely believed that…', 'It has been suggested that…'. The perfect passive infinitive expresses completed actions: 'The policy is known to have failed.' The passive with participle clauses creates concise formal structures: 'Having been informed of the risks, the committee proceeded.' These structures are essential for academic and journalistic writing.

It is widely believed that fiscal austerity has exacerbated inequality.

The reforms are thought to have contributed to short-term instability.

Having been subjected to years of deregulation, the financial sector was ill-prepared for the crisis.

It has been estimated that sovereign debt will exceed 100% of GDP by 2030.

Exercise 1

Rewrite each sentence using the impersonal passive construction indicated in brackets.

1. People believe that the policy has failed. (It…)

2. Experts consider the reform to be inadequate. (The reform…)

3. Analysts estimate that inflation will reach 5%. (It…)

4. People know that the CEO resigned under pressure. (The CEO…)

5. Economists expect that growth will slow. (Growth…)

Exercise 2

Match each sentence beginning with the most appropriate passive continuation.

1. Having been warned about the risks,the investors nonetheless proceeded with the deal.
2. It is widely acknowledged thatquantitative easing prevented a deeper recession.
3. The policy, having been implementedwithout adequate consultation, was met with resistance.
4. It has long been argued thatderegulation benefits large corporations disproportionately.
5. The data, having been collectedover a five-year period, provides robust evidence.

The Invisible Hand Under Scrutiny

It is widely acknowledged that the global financial crisis of 2008 exposed fundamental weaknesses in the prevailing economic orthodoxy. For decades, it had been assumed that financial markets were essentially self-correcting — that the 'invisible hand' would ensure efficient allocation of resources without significant government intervention. Having been subjected to decades of progressive deregulation, the banking sector had developed complex financial instruments that were poorly understood even by regulators. When the crisis struck, it was estimated that global losses exceeded four trillion dollars. Governments, having been left with little alternative, resorted to unprecedented interventions: bank bailouts, quantitative easing, and emergency fiscal stimulus. The austerity measures that followed are now thought to have prolonged the recovery in several European economies. It has since been argued that a more balanced approach — one that combined fiscal responsibility with targeted investment — would have produced superior outcomes. The crisis is considered to have fundamentally altered the discourse around economic governance, though whether lasting structural reforms have been achieved remains a matter of considerable debate.

1. What assumption about financial markets was challenged by the 2008 crisis?

2. According to the passage, what effect are austerity measures now thought to have had?

Discuss these questions with a partner or your teacher.

1Using impersonal passive structures, discuss what is believed to be the greatest economic challenge facing your country. For example: 'It is widely considered that…', 'The problem is thought to have originated from…'
2Role-play: One student is an economist defending austerity, the other argues against it. Use complex passive constructions to present your arguments formally.

Write a short formal analysis (6–8 sentences) of an economic issue in your country or region. Use at least three different complex passive constructions (impersonal passive, passive infinitive, participle clause).

Example: It is widely recognised that youth unemployment has become a defining challenge for the region. The problem is thought to have been exacerbated by a decade of underinvestment in vocational training. Having been designed primarily for an industrial economy, the education system is considered to be poorly aligned with the demands of the modern labour market. It has been suggested that targeted apprenticeship programmes could bridge this gap.

Answer Key — For Teacher Use

Exercise 1

1. It is believed that the policy has failed. · 2. The reform is considered to be inadequate. · 3. It is estimated that inflation will reach 5%. · 4. The CEO is known to have resigned under pressure. · 5. Growth is expected to slow.

Exercise 2

1. Having been warned about the risks, → the investors nonetheless proceeded with the deal. · 2. It is widely acknowledged that → quantitative easing prevented a deeper recession. · 3. The policy, having been implemented → without adequate consultation, was met with resistance. · 4. It has long been argued that → deregulation benefits large corporations disproportionately. · 5. The data, having been collected → over a five-year period, provides robust evidence.

Reading Comprehension

1. The assumption that financial markets were essentially self-correcting and that the 'invisible hand' would ensure efficient resource allocation without significant government intervention. · 2. Austerity measures are now thought to have prolonged the economic recovery in several European economies.