Summary of Ambrose Evans-P. Article
In his
article in Telegraph from the 23rd of October 2013, Ambrose Evans
Pritchard analyzes the deflation within Europe.
In the
beginning he illustrates the European deflation by using a comparison to the
Japanese one. Deflation means no economic growth which can be positive if a
country is not in debt, but due to European Debt Crisis, a deflation would
cause a bigger problem than assumed for Europe. Not only national debts would
be impossible to pay off but also private debts would be affected badly by
this.
Ambrose
Evans Pritchard suggests an increase of inflation within Europe, but Germany
resist against such a policy as their economy is in a good condition, for now
anyway. In the long run this unsolved problem will also affect Germany’s
economy. To carry out this kind of an inflation policy Club Med partners should
ally against Germany and force the country to accept inflation.
Another
solution could be the attempt to cut spending, which is a highly unpopular
process for the population.
In brief,
Europe is hoping for a miracle to occur that will solve the European deflation
and will save them from falling into a deeper crisis.
Criticism
I very much like the topic sentence, it gives you a nice and easy start into the text.
In the second sentence I would replace "using a comparison" by simply "comparing".
I think the second sentence is a bit unclear - deflation leads to no economic growth but I don't think it is the term to describe it. There seems to be a link missing there.
The problems that can be caused by deflation are explained in a very good and understandable way. I think the author did a really good job here in making a complicated topic tangible. This also goes for the proposed solutions - so all in all I think the author did really well in breaking down a complicated issue.