Nouriel Roubini, the New York University professor who predicted the global financial crisis, said the Brazilian, Chinese and Indian economies may be overheating and developing asset bubbles.
The outlook for Brazil’s economy is “very positive,” though the crisis in the Eurozone countries and a slow “u- shaped” recovery globally could dent the country’s growth, Roubini said today at an event in Sao Paulo. “In Brazil, like in many other emerging market economies, there is now evidence of overheating of the economy,” Roubini said. “Expected and actual inflation is starting to rise, and that implies that over the next few quarters there has to be a tightening of monetary policy, gradually but progressively, in order to make sure that inflation expectations remain anchored.” Roubini recommended that Brazilian policy makers take steps to limit the appreciation of the real, including the “judicious” use of capital controls.
Source: IXE, 31.05.2010
Filed under: Asia, Brazil, China, India, Latin America, News, Risk Management, Asia, Black Swan, BM&FBOVESPA, Brazil, China 中国, IXE, Latin America, Nouriel Roubini
