Individuals are increasingly being asked to take on sole responsibility—and assume the burden of risk—for complex savingstasks which were previously at most shared with governments or【S1】______employees, such as investing for a pension or for higher education【S2】______for their children. So how can individual workers or parentsexpected to weigh the risks and make responsible choices in an ever【S3】______more sophisticated financial market? This is true even in countrieswhere consumers generally are familiar of finance instruments such【S4】______as credit cards, mortgage loans and perhaps private saving to "top up" company pension plans. It is all the more difficult in emerging economies whose rapid development has given access to financialservices to the large number of consumers, many of whom have only【S5】______a limited experience with formal financial systems. For emergingeconomies, financially educated consumers can help ensure what the【S6】______financial sector makes an effective contribution to real economicgrowth and poverty reduce. But financial literacy is also crucial for【S7】______more developed economies, to help ensure consumers save enoughto provide an adequate income in retirement while in avoiding high【S8】______levels of debt that might result in bankruptcy and foreclosures. The information available on consumer financial literacy isworried for two reasons—not only do individuals generally lack an【S9】______adequate financial background or understanding to navigate today's complex market, but unfortunately they also generally believe thatthey are far more financial literate than is really the case. This has【S10】______become a cause for increasing concern for governments.

(1)All around the world, shoppers flock to Wal-Mart to buy everything from socks to sofa beds. In McKinney, Texas, they come for another reason: to see the wind turbine. Rising 120 ft. above the ground, it's the tallest structure in town and supplies 5% of the store's electricity. It's not the only thing that makes this Wal-Mart a green giant. There are photovoltaic shingles on the roof, exterior walls coated with heat- reflective paint and a high-tech system that automatically dims or raises the lights depending on whether it's sunny or overcast. Brent Allen, who manages the experimental store, says customers tell him all the time that "they drove out of their way to shop at this Wal-Mart." Which makes you wonder: If folks drive farther man they have to, aren't they burning extra gasoline in their pickups and SUVs? And isn't that offsetting the store's energy savings? (2)The laws of unintended consequences can be cruel for companies trying to do the right thing. The laws of economics suggest that Wal-Mart is so big, with 5,200 stores worldwide, that it influences everything from the price of lumber to the size of the container your laundry detergent comes in. And if this retailing giant throws its weight behind environmental responsibility, the impact could be profound: less air pollution at factories in China, mass-market sales of organic products, cereal boxes that aren't half filled with air. "One little change in product packaging could save 1,500 trees," says Wal-Mart CEO Lee Scott. "If everybody saves 1,500 trees or 50 barrels of oil, at the end of the day you have made a huge difference." (3)Scott wants Wal-Mart to do its part too. He has promised to cut greenhouse-gas emissions at existing stores 20% over the next few years and pledged to construct new stores that are 25% to 30% more efficient. He wants Wal-Mart's fleet of more than 7,000 trucks to get twice as many miles per gallon by 2015. Factories that show Wal-Mart they're cutting air pollution—even those in China—will get preferential treatment in the supply chain. Wal-Mart says it's working with consumer-product manufacturers to trim their packaging and will reward those that do so with prime real estate on the shelves. Scott has pledged to enlist Wal-Mart's army of lobbyists to push for pro-environmental policy changes in Washington, including incentives for utilities to cut greenhouse gases. (4)Cynics might call it a "greenwash", a bid to deflect attention from Wal-Mart's controversial labor and health-insurance practices. But it's not just window dressing, because Wal-Mart sees profit in going green. "We are not being altruistic," says Scott. "This is a business philosophy, not a social philosophy." Some top environmentalists seem convinced he's serious, including Amory Lovins, head of the Rocky Mountain Institute, who is a paid adviser. "We don't go where we don't think there's a genuine interest in change," says Lovins. (5)There's no question that soaring energy costs are fueling Wal-Mart's conservation drive. The company now insists that truckers shut off their engines when stopping for a break, yielding estimated savings of $25 million a year. By doubling the gas mileage of the fleet through better aerodynamics and lower-friction tires, Wal-Mart expects to pocket $310 million a year. One of the biggest items on its energy bill is lighting. Instead of going with the cheapest bulbs, the company is experimenting with costlier LED strips for refrigeration units that last longer and use less energy. Scott also wants to sell more organically grown food and cotton clothing, partly because it's good for the planet, partly because he believes he can get prices down and boost sales to low-income customers. (6)Like Bill Gates, who started his charitable foundation shortly after Microsoft's antitrust trial, Scott happens to be burnishing Wal-Mart's image at a time when his company's reputation is under siege. He acknowledges that he launched the plan partly to shield Wal-Mart from bad press about its contribution to global warming. "By doing what we're doing today you avoid the headline risks that are going to come for people who did not do anything," he says. "At some point businesses will be held accountable for the actions they take." Meanwhile, should Wal-Mart succeed at shrinking its environmental footprint and lowering prices for green products, both the planet and the company will profit. Sam Walton would have liked that.

当今世界正处在深刻变革与调整之中。多极化和全球化继续深入发展，国与国之间互相联系日益紧密，利益交融，休戚与共。求和平、谋发展、促合作仍是这个时代不可阻挡的潮流。然而，我们也应看到，世界仍然不安宁，局部冲突和热点问题此起彼伏；全球经济失衡加剧，南北差距持续扩大；气候变化、能源和资源等问题十分突出。应对挑战，维护和平，促进发展已成为国际社会面临的紧迫而艰巨的任务。

(1)Mr. Duffy raised his eyes from the paper and gazed out of his window on the cheerless evening landscape. The river lay quiet beside the empty distillery and from time to time a light appeared in some house on Lucan Road. What an end! The whole narrative of her death revolted him and it revolted him to think that he had ever spoken to her of what he held sacred. The cautious words of a reporter won over to conceal the details of a commonplace vulgar death attacked his stomach. Not merely had she degraded herself; she had degraded him. His soul's companion! He thought of the hobbling wretches whom he had seen carrying cans and bottles to be filled by the barman. Just God, what an end! Evidently she had been unfit to live, without any strength of purpose, an easy prey to habits, one of the wrecks on which civilization has been reared. But that she could have sunk so low! Was it possible he had deceived himself so utterly about her? He remembered her outburst of that night and interpreted it in a harsher sense than he had ever done. He had no difficulty now in approving of the course he had taken. (2)As the light failed and his memory began to wander he thought her hand touched his. The shock which had first attacked his stomach was now attacking his nerves. He put on his overcoat and hat quickly and went out. The cold air met him on the threshold; it crept into the sleeves of his coat. When he came to the public-house at Chapel Bridge he went in and ordered a hot punch. (3)The proprietor served him obsequiously but did not venture to talk. There were five or six working-men in the shop discussing the value of a gentleman's estate in County Kildare. They drank at intervals from their huge pint tumblers, and smoked, spitting often on the floor and sometimes dragging the sawdust over their heavy boots. Mr. Duffy sat on his stool and gazed at them, without seeing or hearing them. After a while they went out and he called for another punch. He sat a long time over it. The shop was very quiet. The proprietor sprawled on the counter reading the newspaper and yawning. Now and again a tram was heard swishing along the lonely road outside. (4)As he sat there, living over his life with her and evoking alternately the two images on which he now conceived her, he realized that she was dead, that she had ceased to exist, that she had become a memory. He began to feel ill at ease. He asked himself what else could he have done. He could not have lived with her openly. He had done what seemed to him best. How was he to blame? Now that she was gone he understood how lonely her life must have been, sitting night after night alone in that room. His life would be lonely too until he, too, died, ceased to exist, became a memory—if anyone remembered him.

Hot Spots in Cross Cultural CommunicationI.【T1】______Conversations【T1】______— Modes of address—【T2】_____【T2】______— Levels of deference to age or social position— Acceptable ways to conclude—【T3】_____【T3】______II. Taking Turns During Conversations— Some cultures: take turns in a(n)【T4】_____ way【T4】______— Others: response might be regarded as a challenge or a humiliation, depending ona)the context of the conversationb)【T5】_____【T5】______c)the levels of personal knowledge/relationship— Example: western give and take in a public marketIII. Interrupting— Interruption, vocal and emotional expression are considered to be the default conversational style for those considered to be equalsand for【T6】_____【T6】______— Northern European or American extract: argument and hostilityIV. Use of Silence— Silence: a sign of【T7】_____ and deference【T7】______a sign of hostility— In the west:【T8】_____ seconds silence is terribly long【T8】______V. Appropriate Topics of Conversation— Vulgar: speak openly about money, intimate【T9】_____ issues【T9】______— Travelers or businessmen should learn【T10】_____【T10】______VI. Use of Humor— In the west: use humor to【T11】_____【T11】______— Some other cultures: humor is a sign of disrespectVII. Knowing How Much to Say— In the west: less is more— Some other places: a【T12】_____ wrap-up【T12】______— Factors to determine how much to say:a)Ageb)【T13】_____【T13】______c)CultureVIII. Sequencing Elements During Conversation— When to bring up more【T14】_____【T14】______— When to ask for directions— Ask the right question in the right way at【T15】_____【T15】______

(1) Cheating in sport is as old as sport itself. The athletes of ancient Greece used potions to fortify themselves before a contest, and their modern counterparts have everything from anabolic steroids and growth hormones to doses of extra red blood cells with which to invigorate their bodies. These days, however, such stimulants are frowned on, and those athletes must therefore run the gauntlet of organizations such as the World Anti-Doping Agency (WADA), which would rather that athletes competed without resorting to them. (2) The agencies have had remarkable success. Testing for anabolic steroids (in other words, artificial testosterone) was introduced in the 1970s, and the incidence of cheating seems to have fallen dramatically as a result. The tests, however, are not foolproof. And a study just published in the Journal of Clinical Endocrinology & Metabolism by Jenny Jakobsson Schulze and her colleagues at the Karolinska Institute in Sweden suggests that an individual's genetic make-up could confound them in two different ways. One genotype, to use the jargon, may allow athletes who use anabolic steroids to escape detection altogether. Another may actually be convicting the innocent. (3) The test usually employed for testosterone abuse relies on measuring the ratio of two chemicals found in the urine: testosterone glucuronide (TG) and epitestosterone glucuronide (EG). The former is produced when testosterone is broken down, while the latter is unrelated to testosterone metabolism, and can thus serve as a reference point for the test. Any ratio above four of the former to one of the latter is, according to official Olympic policy, considered suspicious and leads to more tests. (4) However, the production of TG is controlled by an enzyme that is, in turn, encoded by a gene called UGT2B17. This gene comes in two varieties, one of which has a part missing and therefore does not work properly. A person may thus have none, one or two working copies of UGT2B17, since he inherits one copy from each parent. Dr. Schulze guessed that different numbers of working copies would produce different test results. She therefore gave healthy male volunteers whose genes had been examined a single 360mg shot of testosterone (the standard dose for legitimate medical use) and checked their urine to see whether the shot could be detected. (5) The result was remarkable. Nearly half of the men who carried no functional copies of UGT2B17 would have gone undetected in the standard doping test. By contrast, 14% of those with two functional copies of the gene were over the detection threshold before they had even received an injection. The researchers estimate this would give a false-positive testing rate of 9% in a random population of young men. (6) Dr. Schulze also says there is substantial ethnic variation in UGT2B17 genotypes. Two-thirds of Asians have no functional copies of the gene (which means they have a naturally low ratio of TG to EG), compared with under a tenth of Caucasians—something the anti-doping bodies may wish to take into account. (7) In the meantime, Dr. Schulze's study does seem to offer innocents a way of defending themselves. Athletes traveling to Beijing for the Olympic games may be wise to travel armed not only with courage and the "spirit of Olympianism", but also with a copy of their genetic profile, just in case.

Different species of octopuses may measure anywhere from two inches to over thirty feet in long.

Japan is known for its culture of workaholic for long. Now the Japanese government is considering stepping into stop the madness, with plans to submit legislation that would make five dags of paid vacation mandatory every year. The following article gives more details of this policy. Write an article of NO LESS THAN 300 words, in which you should: 1. summarize the article briefly, and then 2. express your opinion towards the regulation, especially whether we need similar regulations in China. In Japan, It Soon May Be Illegal Not to Take Vacation Wake up at 7:30, commute to work, spend 13 hours in the office, run for the last train home, eat, and crash into to bed. The next day, rinse and repeat. Welcome to the insane working hours of a Japanese "salaryman" during crunch times at work. It's a schedule that sometimes leads to what the Japanese call karoshi—death by overwork. Now, in an attempt to help, the Japanese government is considering a plan to force workers to take five vacation days a year. "People are literally working themselves to death," says Jeffrey Johnson, a researcher at the University of Maryland who studied the phenomenon of karoshi. "There's an accumulation of case studies of people who worked extremely intense hours, and then died when they were relatively young." A Japanese nonprofit set up by the families left behind lists one typical example: Mr. Kanameda, who worked as many as 110 hours every week at a snack food company, and died at 34. Like the U.S., where only half of workers took a single vacation day last year, Japan has a culture that makes people reluctant to take time off. "People truly believe the harder they work, the better they are," says Johnson. "And there's this kind of samurai commitment to their employers, this devotion to duty that enables people to lose that almost instinctual self-protection." The problem isn't just long hours, but the intensity of work. Some jobs also incorporate the philosophy of kaizen—continuous improvement—which asks employees to ruthlessly eliminate any second of downtime on the job. If the government ends up forcing people to take vacations, that may help. "It's putting limits on the degree to which people can have this kind of socialized 'work is more important than anything else' kind of philosophy take over their entire lives," says Johnson. "During that rest period, their body gets to recalibrate. It takes quite a while if you've had a very intense period of stress. Maybe longer than a typical vacation. But any vacation does help." If Japan needs to force workers to take vacations, then the U.S. might want to do the same (a few forward-thinking companies already are). In a year, U.S. workers work 1,800 hours—more than any other country in the world, including Japan. The less money an American worker makes, the less likely they are to take any vacation days. "When we do go on vacation, we bring all these electronic devices to wire us in," Johnson says. "We can't help it. But all of this is one of the reasons there's so much growth in things like mindfulness meditation—ways of trying to calm the body and quiet the mind. It's happening because there's such a great need for it in our society."

Three Concepts in Art HistoryI. Commonalities- Certain chunk of【T1】_____,【T1】______within which【T2】_____ were shared【T2】______II. Periodization- A combination of【T3】_____【T3】______- Periodizers use words to describe【T4】_____【T4】______III. Rules of PeriodizationA.【T5】_____【T5】______- Newly discovered data result in【T6】_____ in periodization【T6】______B. Era- Usually longC. Period- Shorter than an era- Sometimes used【T7】_____ with era【T7】______- Catch-all category- Two situations of using "period"a)Significant ruler was dominant in a specific【T8】_____【T8】______b)Nobody was taking control whatsoever- Period may also be【T9】_____ to an artist【T9】______e.g. Picasso's "blue" and "rose" periodD. Movement- Elements of movementa)A band of artistsb)X amount of timec)【T10】_____【T10】______e.g. artistic style, common enemies etc.- Impressionisma)Explore new ways of depicting【T11】_____【T11】______b)New techniques in【T12】_____【T12】______c)Support artistic effortsd)Hold their own【T13】_____【T13】______e)Make the art establishment【T14】_____【T14】______- Short-lived- Less【T15】_____ in contemporary times【T15】______

Throughout the nation's more than 15,000 school districts, widely differing approaches to teaching science and math have emerged. Though there can be strength in diversity, a new international analysis suggests that this variability has instead contributed to lackluster achievement scores of U. S. children related to their peers in other developed countries.【S1】______ Indeed, concludes William H. Schmidt of Michigan StateUniversity, who led the new analysis, " no single intellectual【S2】______coherent vision dominates U. S. educational practice in math or science. " The reason, he said, "is because the system is deeply and fundamentally flawed. " The new analysis, which released this week by the National【S3】______Science Foundation in Arlington, Va. , is based on data collecting【S4】______from about 50 nations as part of the Third International Mathematics and Science Study. Not only approaches to teaching science and math vary among【S5】______individual U. S. communities, the report finds, but there appears tobe a little strategic focus within a school district's curricula, its【S6】______textbooks, or its teachers' activities. This contrasts sharply with the coordinated national programs of most other countries. In average, U.S. students study more topics within science【S7】______and math than their international counterparts do. This creates aneducational environment where " is a mile wide and an inch deep,"【S8】______Schmidt notes. For instance, eighth graders in the United States cover about 33 topics in math versus just 19 in Japan. Among science courses,the international gap is even wide. U. S. curricula for this age level【S9】______resemble those of a small group of countries including Australia, Thailand, Iceland, and Bulgaria. Schmidt asks whether the United States wants to be classed with these nations, whose educationalsystems "share our pattern of splintered visions" and which are not【S10】______economic leaders.

Not only tears keep your eyes lubricated, they also contain a substance that kills certain bacteria so that they can't infect your eyes.

Cross Cultural NegotiationsIt's important to understand the cultural differences in negotiations, as different cultures have different ways of negotiation. Here are some advice for cross cultural negotiations.I. Different cultures have different【T1】_____【T1】______— Advice:A. Do some homeworkB. Identify the standard expected negotiating【T2】_____【T2】______C. Develop skills to overcome【T3】_____【T3】______II. A(n)【T4】_____ for cross cultural negotiation【T4】______— Do your research on what will be expected of youA Define your schedule, what to【T5】_____ and bring【T5】______B. Verify standard practices【T6】_____【T6】______— Two options if in a more different environment:A Hire local【T7】_____【T7】______B. Arrange for a local【T8】_____ to accompany you【T8】______III. Eight best practicesA【T9】_____ what is expected of you【T9】______B. Explain that how much you appreciate the business opportunitiesC. Explain that you are【T10】_____ here【T10】______D. State your【T11】_____【T11】______E. Ask for instructionsF. Apologize if you do or say something【T12】_____【T12】______G. Show your desire to【T13】_____ in the negotiations【T13】______H. Reaffirm the intent to do business with them and learn their culture-【T14】_____【T14】______A. Remain constantly aware of your environmentB. In use of each advice, do not go【T15】_____【T15】______

PASSAGE FOUR

Stress Management I. The goal of stress management— taking charge of thoughts, emotions,【T1】______ and environment etc.【T1】______— the【T2】______ a balanced life【T2】______II. Sources of stress— not always obvious— too easy to【T3】______ the real stress【T3】______III.【T4】______ to manage stress【T4】______A. Avoid unnecessary stress— say "no" to【T5】______【T5】______— avoid people who cause stress to you— take control of environment— cut down to-do list:a)【T6】______ of schedule, responsibilities and daily tasks【T6】______b)distinguish the "shoulds" and the "musts"c)drop unnecessary tasks or【T7】______【T7】______B.【T8】______【T8】______— voice your feelings— be more assertive— better time【T9】______【T9】______C. Adapt to the stressor—【T10】______problems【T10】______— Set【T11】______ standards【T11】______— concentrate on positive thingsD. Accept【T12】______【T12】______— focus on things that can be changed rather than those【T13】______【T13】______— face challenges in an upside way— to share— to forgiveE. Make time for【T14】______【T14】______F. Adopt a healthy lifestyle—【T15】______ exercise【T15】______— healthy diet— enough sleep

PASSAGE THREE

{{B}}PART I LISTENING COMPREHENSION{{/B}}

谁能否认海的伟大呢? 我爱海，并不仅仅因为她的颜色美丽，和藏在海底那许多有趣的玩意儿，而是爱她的胸襟广阔，化污秽为清洁。她容纳无数的细流，尽管她们的颜色有黑的也有黄的，一旦流到了海的怀抱，立刻变成碧绿的了，碧绿是代表和平，一种静美。一个人，哪怕他的脾气有如虎狼般那么凶暴，我相信如果长住在海滨，一定会变得和羔羊一样驯良。同时，那些心怀狭隘的人，如果常与海做朋友，我相信他也会改变成豪爽、痛快的性格。

In recent years, a handful of university students choose to commit suicide in face of love issue, academic issue or job issue. The following article provides detailed information about this issue. Read it carefully and write your response in NO LESS THAN 300 words, in which you should: 1. summarize briefly the article, and then 2. share your opinion on how college students handle tremendous pressures at campus. Mental Health Problems for College Students Are Increasing Of students surveyed in the National College Health Assessment this year, 33 percent reported feeling so depressed within the past 12 months. Almost 55 percent reported feeling overwhelming anxiety while 87 percent reported feeling overwhelmed by their responsibilities. Almost 9 percent seriously considered suicide over the past year. Gregg Henriques, Ph.D., professor of graduate psychology at James Madison University says these numbers are clear indicators that college students are experiencing what he calls a "mental health crisis." According to Henriques, mental health survey results from the mid-1980s indicate that 10 to 15 percent of young adults could have been characterized as having significant mental health problems. Today, he said the number is anywhere from 33 to 40 percent While depression and anxiety are the most commonly reported mental illnesses, eating disorders, substance abuse, and self-injury are close behind. Jason Selby, a University of Oregon junior, experienced massive anxiety about "every little thing in life," and he believed his anxiety was triggered by a multitude of social and academic stresses. "The pressure to succeed during school is oftentimes overwhelming," he said. "Students spend a majority of their time worrying about how to add things to their resume, instead of worrying about how to better themselves as individuals." "College is great. It's the first time in a young person's life where they can experience freedom and make choices that could really impact the rest of their lives," he said. "At the same time, the fear of the unknown is a 'reality' that becomes all too familiar in college." The growing number of options for young people and lack of a clear "life path" could prompt existential depression or anxiety, Henriques said. "We certainly see a lot of confusion about students' identity and how they're going to contribute to society," he said. "They don't really have a clear, easy track into a job or a career or a marriage, and so they sort of stagnate in adolescence. They struggle in finding a purpose." For former University of South Carolina student Margaret Kramer, the growing presence of social media and the Internet only contributed to the pressure she felt to be perfect. "I felt like I didn't fit in anytime I saw my friends' posts on their fun, carefree lives," she said. "Those pictures, as well as other sources I found on the Internet, served as monitors for my extreme dieting and exercising." According to Dr. Jason Addison, service chief of the Young Adult Unit at Sheppard Pratt Health System, the growing role of social media might be to blame for increased levels of anxiety and depression. He also observed that social media could prompt unfavorable comparisons between peers, further exacerbating symptoms of mental illness. Henriques believes social media and technology in general might exacerbate some students' already-present symptoms, or cause them to rise to the surface.

Laos, a poor country of 6 million people wedged between Vietnam and Thailand, has no openings to the sea and few routes to world attention. But it is now enjoying a rare moment in the sun. Last month it won approval to join the World Trade Organisation. This week it hosted the ninth Asia-Europe meeting, which brings together leaders from the world's most and least dynamic regions. Its small economy, which exports gold, copper and hydropower, is distinguishing itself. Its growth rate is not only one of the fastest in the world but also one of the steadiest. In spite of the fluctuated growth rate worldwide, growth in developing Asia, especially in Indonesia and Bangladesh, is now steadier, as well as faster, than growth in the "mature" economies of the G7. The "Great Moderation" is the name given to the era of economic tranquility that prevailed in America and elsewhere in the rich world before the financial crisis. Should the label now be applied to Asia? Asia's economies are better known for their speed than their stability. Even now some highly open economies, such as Thailand, Singapore, remain more volatile than the global average. Exposed to international trade flows, their industrial output fluctuates like a twirling ribbon with every twitch of demand. But developing Asia (which excludes rich economies like Singapore, South Korea) is dominated by populous countries that rely increasingly on domestic demand to drive their economies. Household consumption contributed half of the growth of just over 6% Indonesia enjoyed in the year to the third quarter. Developing Asia's combined current-account surplus, which reflects its dependence on foreign demand, more than halved from 2008 to 2011 and is expected to fall further this year. Asia's stability also owes something to demand management. During the Asian financial crisis, policymakers faced a dilemma. They could defend their exchange rates by raising interest rates. But that would cripple borrowers. Or they could let their currencies fall and ease rates. But that would inflate the burden of foreign-currency debt, crippling borrowers too. In the aftermath of the crisis the region worked its way out of this trap. Most countries accumulated an impressive stock of hard-currency reserves and weaned themselves off foreign-bank loans in favour of foreign equity and local-currency bonds. Because these liabilities were denominated in their own currency, they did not rise in value when the currency fell. That has freed policymakers to cut interest rates when the economy slows. Indonesia's central bank, for example, slashed rates by three percentage points from December 2008 to August 2009. It cut rates by another point from October 2011 to February 2012. Thanks in part to its responsive central bank, Indonesia's year-on-year growth rates over the past 20 quarters have been the most stable in the world. Wise monetary policy was also one of the reasons cited for the Great Moderation enjoyed by the G7 economies. Another was the supposed depth and sophistication of the rich world's financial systems, which, it was said, allowed households to smooth their spending, firms to diversify their borrowing and banks to unburden their balance-sheets. Both of these pillars of stability proved false comforts. Economists had not quite settled on an explanation for the Great Moderation before it inconveniently ceased to exist. Worryingly, Asia's great moderation has also been accompanied by sharply rising credit. According to Fred Neumann of HSBC, leverage is now higher than at any time since the Asian financial crisis. This credit expansion may represent healthy "financial deepening", which many economists believe is a cause of growth and stability. But rising leverage can also be a threat to stability. The late Hyman Minsky, among others, argued that drops in volatility allow firms and households to borrow more of the money they invest. Stability, in Minsky's formulation, eventually becomes destabilising. Overleverage does not require excessive optimism, merely excessive certitude; not fast growth, merely steady growth. Fortunately, Asia's policymakers never shared the West's faith in self-correcting financial systems. The region has pioneered "macro-prudential" regulations, designed to curb excessive credit and capital flows even without raising interest rates. In March, for example, Indonesia tightened loan-to-value ratios on mortgages and imposed minimum downpayments on car and motorbike loans. Mr. Neumann is, however, skeptical that regulatory tightening can substitute for the monetary kind. Macro-prudential controls are not watertight, he notes. As long as capital remains cheap, money will leak. If the regulator lowers mortgage loan-to-value ratios, for example, banks may simply raise the appraised value of a home. If regulators impede foreign purchases of property, as Hong Kong just did, foreigners will seek inventive ways around the rules. Hong Kong's freedom to raise rates is constrained by its currency's fixed link to the dollar, one of the few pegs to survive the Asian financial crisis. Other central banks do not have that excuse. Currency flexibility has given them the freedom to cut rates when growth slows. It should also allow them to raise rates when financial excess threatens—even if rates remain near zero in America, Europe and Japan. If stable growth allows lenders or borrowers to become overstretched, it can "sow the seeds of its own destruction", Mr. Neumann argues. Nothing great about that.