The Fragile Five Emerging Economies are : India, Indonesia, Brazil, Turkey and South Africa
Roubini : "All have flexible exchange rates, a large war chest of reserves to
shield against a run on their currencies and banks and fewer currency
mismatches (for example, heavy foreign-currency borrowing to finance
investment in local-currency assets)," Roubini, nicknamed Dr. Doom for
his generally bearish views, wrote in an op-ed on the Project Syndicate
website on Friday. "Many also have sounder banking systems, while their
public and private debt ratios, though rising, are still low, with
little risk of insolvency," he said. "The short-run policy tradeoffs
that many of these countries face - damned if they tighten monetary and
fiscal policy fast enough, and damned if they do not - remain ugly," he
said.
Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
