IMF economist: German budget policy appropriate, U.S. doing too much

BERLIN Thu Apr 25, 2013 6:29am EDT

International Monetary Fund's Economic Counsellor and Director of Research Department Olivier Blanchard enters the news briefing on the World Economic Outlook (WEO), at the Tokyo International Forum in Tokyo October 9, 2012. REUTERS/International Monetary Fund/Stephen Jaffe/Handout

International Monetary Fund's Economic Counsellor and Director of Research Department Olivier Blanchard enters the news briefing on the World Economic Outlook (WEO), at the Tokyo International Forum in Tokyo October 9, 2012.

Credit: Reuters/International Monetary Fund/Stephen Jaffe/Handout

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BERLIN (Reuters) - Germany is not consolidating its own budget but policy overall is appropriate, Olivier Blanchard, chief economist of the International Monetary Fund was quoted as saying on Thursday.

In an interview with German weekly Die Zeit published on Thursday, Blanchard added the United States of America was consolidating its budget too much budget at the moment.

"Germany is not saving. According to our calculations, the public deficit adjusted for economic swings, is rising slightly this year," Blanchard told Die Zeit in an interview.

"The debate isn't without a degree of irony. The Americans are telling the Germans to save less - but their own speed of consolidation is one of the highest in the world.

"The Germans are giving the Americans advice to save more - but their own fiscal policies are slanted towards expansion."

(Reporting by Annika Breidthardt)

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Comments (1)
Willvp wrote:
Austerity called now: “Growth adjusted consolidation”…

You will not hear the word “austerity” anymore, out of the mouth of a ECB or affiliated money-grabber.

nice one !

Apr 25, 2013 5:46am EDT  --  Report as abuse
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