Sonntag, 24. November 2013
blog post critique for summary part
SUMMARY OF EUROPE ALREADY HAS ONE FOOT IN “JAPANESE“ DEFLATION GRAVE
Ambrose Evans-Pritchard, in The Telegraph of October 23, 2013 discusses the problem of Europe’s deflation crisis.
Evans-Prichard states that deflation makes debt worse and that it is extremely dangerous if debt surpasses 300% of GDP, which is currently the problem in Western Europe. Although inflation could solve this dilemma, it is an impossible approach to stop deflation because inflation is already too low and plummeted to 0.9% in the euro zone.
Consequently, debt ratios are irrupting and the risk of runaway debt, which primarily affects Italy and Spain, is increasing. Italy, for example, has two options to solve the problem of runaway debt; either to pay 6.3% towards debt or accept a massive unemployment rate.
Moreover, private debt is also affected by deflation and therefore even Germany is at risk.
According to Evans-Pritchard, there are only two possible solutions to the problem. Either France, Italy, Spain and the Club Med advise the EBC to implement a relation policy; or Europe waits for the salvation of a global growth, which is highly unlikely to set in.
As the title indicates, Europe is in a highly problematic situation which could lead to a policy crisis comparable to the one in Japan.
199 WORDS, NOT INCLUDING TITLE
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The summary includes many key points, but sometimes links between facts seem somewhat inadequate. As far as language is concerned, one can clearly see that the writer tried hard to reformulate passages in his own words, which not always works perfectly. As a consequence sentences are occasionally hard to understand after the first lecture. Towards the end the reference to the title is somehow confusing as not only seems it out of place, but also a desperate attempt to include that relation to the title. Some facts, I found are not very relevant to go into a 200 word summary of a 3 page text. Altogether, however, I think it is a fair summary with some space for improvement and refining though.
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