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