The US criticism of Germany’s economic policy is correct

Today’s commentary
Summary: The U.S. Treasury’s semi-annual currency report had surprisingly strong criticism for Germany. The U.S. claims that Germany’s macroeconomic policies are inherently deflationary, creating risk for further crisis. I agree with this criticism and I will explain why it is valid here.
Here is the part of the report on Europe that everyone is talking about (pdf here). I have added underlining on the key bits for emphasis:

Euro area deficit countries have sharply reduce...

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