Dear Author!
Firstly, I am to say that your summary stands out by the apt usage of linking devices.
Such words as "nevertheless", "besides", "furthermore", "to make things worse"
make your summary both cohesive and coherent. Secondly, your text is well-structured and contains only relevant information.
Firstly, I am to say that your summary stands out by the apt usage of linking devices.
Such words as "nevertheless", "besides", "furthermore", "to make things worse"
make your summary both cohesive and coherent. Secondly, your text is well-structured and contains only relevant information.
Ambrose Evans-Pritchard, in The Telegraph of October 23, 2013, analyses the
Europe’s deflation crisis and policy error.
The author believes if policy error continues, Europe will be trapped in
deflation as Japan is now. Besides, debt ratios in Europe are already soaring
up. Nevertheless, the EU authorities linger to deal with the problems.
Deflation causes a dramatic debt rise which is lethal once it exceeds 300pc.
The situation is becoming only worse.
Furthermore, the Europe’s debt crisis strategy is contradictory. The states
suffering from deflation are coerced to ultra-austerity to offset lost
competitiveness against Germany. The author considers such policy to be
brutal, self-defeating and ineffective.
To make things worse, deflation influences private debt even more; here not
only the debt shoots up, but liquid assets come into play, so that small firms
could stay afloat.
Debt dynamics depends on inflation. According to Mr Darvas, the only way to
escape the deflation grave is to let the inflation grow. The ECB should
implement all possible measures to keep inflation rate at 2pc point at least.
However, the ECB stays inactive.
The author sees the way out from deflation in the Club Med allies’ teaming
up and forcing the reflation policy.
