Cracks in BRICs: A sectoral financial balances analysis and implications for macroeconomic policy
BRIC – Brazil, Russia, India and China – were, in the recent past, not only considered to be the largest and fastest growing economies amongst the emerging markets but also the engines of global economic growth. However, since 2012 cracks have emerged in this narrative. With negative, decelerating a...
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| Format: | Article |
| Language: | English |
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General Association of Economists from Romania
2016-09-01
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| Series: | Theoretical and Applied Economics |
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| Online Access: |
http://store.ectap.ro/articole/1198.pdf
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| Summary: | BRIC – Brazil, Russia, India and China – were, in the recent past, not only
considered to be the largest and fastest growing economies amongst the emerging markets
but also the engines of global economic growth. However, since 2012 cracks have emerged
in this narrative. With negative, decelerating and insufficient GDP growth, the BRIC
countries are floundering. This paper attempts to identify the causes, policy responses and
challenges emanating from these policies for each of the BRIC economies using the post-
Keynesian, Structural Financial Balances framework. The study draws attention to the
importance of fiscal policy as a short-term macroeconomic policy option. |
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| ISSN: | 1841-8678 1844-0029 |