Merkel's economic advisers support her push for austerity
Ahead of the upcoming G-20 Summit in Toronto, Canada, Chancellor Angela Merkel of Germany has defended her government's spending cuts, which US President Barack Obama has warned could hamper economic recovery.
In Berlin, former European Central Bank chief economist Otmar Issing has come out in support of German Chancellor Angela Merkel's push for savings measures and a bank tax, which contradict advice given by US President Barack Obama.
"We do not see the resolution of the current imbalances in countries accumulating increasingly more debt," said Issing, who heads the team of economists advising Chancellor Merkel. He added that further increasing national debts would weaken the confidence of the markets.
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Top economist supports Merkel's push against Obama's criticism