Ambrose Evans-Pritchard, in the Telegraph of October 23, 2013, discusses the aspects of
the European Debt crisis while suggesting potential pertinent solutions. He dissects this
economic dilemma by providing a wide range of specific examples to expose its nature.
Evans-Pritchard proves that such a crisis is not preliminary by illustrating his article with
examples of events such as the American Revolution and the US agrarian revolt of the late
20th century, which according to author were induced by the economic policy errors. These
errors are being committed even nowadays.
Accordingly, the risks of deflation are highly underestimated, particularly in low debt
countries. While the inflation has been subsiding, there has been an upsurge of deflation. If
the latter exceeds 300%, severe consequences are to be expected. The Eurozone countries
are on the verge of experiencing the Japanese-style deflation.
Moreover, the symptoms are already there but attempts to eradicate the deflation problems
are not undertaken. Although, there are potential solutions such as forcing Germany to
accept inflation, the country is tentative to do so, due to its strong economy. Therefore,
apathy is chosen with a hope for a salvation by the next global growth.
My Critique:
I don't think that this summary is particularly good. It starts off very well, though.
While I really like the first two sentences, I think that the rest of the first paragraph is fluff. The American Revolution and the agrarian revolt are just briefly mentioned and are not important for the message of the text at all.
I also think that the author should have described the effects of deflation. They just go on and on about how bad deflation would be for Europe but don't explain why. "[...] severe consequences are to be expected", yeah but what consequences??
I don't believe that "moreover" is the right linking word to start the third paragraph. I wouldn't have used a linking word at all, but if the author wants to use on "furthermore" would be a better choice. I also wouldn't have written "with a hope for" but rather "in hope of".
