This
is especially true in India, Brazil, Turkey, South Africa, and
Indonesia, all of which suffer from multiple macroeconomic and policy
weaknesses – large current-account deficits, wide fiscal deficits,
slowing growth, and above-target inflation – as well as growing social
protest and political uncertainty ahead of elections in the next 12-18
months. There are no easy choices: defending the currency by hiking
interest rates would kill growth and harm banks and corporate firms;
loosening monetary policy to boost growth might push their currencies
into free-fall, causing a spike in inflation and jeopardizing their
ability to attract capital to finance their external deficits. - in project syndicate
NOURIEL ROUBINI BLOG tracks the media appearances of Dr Nouriel Roubini his interviews articles debates books news speeches conferences blogs etc..Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
Thursday, September 5, 2013
The BRICS were overhyped for too long
These economies – the BRICS
(Brazil, Russia, India, China, and South Africa) and others – were
overhyped for too long. Favorable external conditions – the effect of
China’s strong growth on higher commodity prices and easy money from
yield-hungry advanced-economy investors – led to a partly artificial
boom. Now that the party is over, the hangover is setting in.
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The BRICS