Ambrose Evans-Pitchard’s article in The Telegraph of the 23rd
October 2013 analyses the approaching European deflation in connection with
debt.
At the beginning of the text, the author mentions that deflation had
already occurred before. Deflation can influence the economy of countries
positively if they are not too heavily in debt. This, however, is not the case
in Europe: As many countries are overburdened with debts, repaying it becomes
more and more difficult if the inflation is too low. This problem does not only
affect national but also private debt.
It is argued that the ECB should try everything to maintain an inflation
of at least 2% in order to prevent from an economic disaster, but according to
the author Europe seems to be paralyzed. Italy, France and Spain should gang up
on Germany and dictate a new policy, which combats deflation and could
therefore help restoring the damaged economies. Yet, they fear that Germany
might leave the EMU and leave it up to the rest to solve the debt problem.
Summing up, Europe is far away from a proper solution. It still seems to
be in recession but
prefers to wait for an economic miracle instead of taking the
initiative.
[201 words]
Comment:
In general, the student who wrote this text has produced a good summary.
The introducing sentence hits the nail on the head and clearly explains what
the original article was about. However, one thing I missed throughout the
whole text is the emphasis on the opinion of the author. The student wrote “It
is argued” and “It still seems” and reflects only one time the purpose of the
author. Also the phrase that Italy, France and Spain should gang up on Germany
sounds more like a general idea than the solution of the author. There are also
numerous positive aspects of the summary. The student concentrates on the most
essential information, lists them in a logical order and always writes in their
own words. Moreover, the text producer remains an objective reporter. In terms
of language, an appropriate register is used and I have just found two
expressions with “it” where it is not 100% clear what the student wants to
refer to.
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