Emerging Economies at risk of rising Inflation
Fed has increased the pace of its QE tapering, structural reforms are
not likely until after elections; and incumbent governments have been
similarly wary of the growth-depressing effects of tightening fiscal,
monetary, and credit policies.
Indeed, the failure of many emerging-market governments to tighten
macroeconomic policy sufficiently has led to another round of currency
depreciation, which risks feeding into higher inflation and jeopardizing
these countries ability to finance twin fiscal and external deficits.
Chinese growth is unlikely to accelerate and lift commodity prices
Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics