ET Now: Do you think the commodity super cycle is over?
Nouriel Roubini : There are a number of factors as to why the commodity super cycle is probably over. First of all, China
is slowing down. Their growth rate might be as low as 6% or 7%.
Additionally, we have a slow recovery in advanced economies and since
there the monetary policy is going to be tightened, however, gradual.
The Fed eventually is going to start tapering, would eventually go away
from zero policy rates and that increase in short and long rates is
going to soften commodity prices as well. The dollar is going to
strengthen over time because economic growth in the US is going to
outperform the one in other advanced economies. The Fed is going to exit
faster than other central banks.