Summary Correction

Europe already has one foot in ‘Japanese” deflation grave 

“The debt deflation theory” by professor Irving Fisher would take EU authorities far 

in the battle against rising debt. As the American Revolution has shown, deflation is an

underestimated danger with the potential to lead to economic disaster. If total debt 

grows too high, as happens in Western Europe, deflation gets mortal. The eurostat 

index depicts that deflation has dropped. The tendency of falling prices is seen in 

many countries. Similar to Japan’s crisis, the eurozone economy is in endangered by 

high debt ratios and sustained deflation. Zsolt Darvas from the Brussels think tank 

Bruegel equates deflation with bleakness. He accuses the European approach of the 

debt crisis and mentions the dilemma of states being pushed to “internal 

devaluations”. Vicious dynamics such as the “denominator effect” are witnessed 

in countries like Italy, where debt rises faster than GDP. The same is true for 

private debt, where with crash diets for erred states, economic self destruction 

was only enhanced. For Mr Darvas, let inflation elevate means escaping 

from the deflationary spiral. Responsible for money shifting to Germany is the ECB 

and non counteracting member states which fear Germany would leave the eurozone. 

Europe hope for global growth to fight the deflation virus.

Comments & Corrections

First of all, I thinks that the author and the newspaper in which the article was 

published should be mentioned at the beginning. There is no logical structure in the 

summary, it reads like a nice story but it is not clearly structured. I also think that 

there are several things that should be in the summary that were left out and that

there are many unimportant facts included in the summary. One example for this is

Irvin Fisher, he is not mentioned very often in the article, so I do not think that he

needs to be in the summary. I also think that Zsolt Darvas should not be in there.

I like it that the summary states that deflation is very dangerous, but I think that 

maybe the path to that deflation should be explained.What I do not understand is 

that the summary says that deflation has dropped. It should be the other way around. 

The article is about the danger of too high deflation in Europe.

If I had to correct this summary, I would rewrite the whole thing because I can not

make sense of the structure and the logic of the writer.