MERCO PRESS/ Economist and professor Nouriel Roubini, aka "Doctor Doom," who predicted the global financial crisis believes Brasil's, China's and India's economies may be overheating and developing asset bubbles. “In Brazil, like in many other emerging market economies, there is now evidence of overheating of the economy,” he 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 wants Brasil to limit the appreciation of the Real, including the “judicious” use of capital controls. The currency has gained 8.2% against the dollar over the past 12 months.
Posts