Opinion (Nouriel Roubini, professor at NYU’s Stern School of Business and Chairman of Roubini Global Economics): “At the same time, the Fed’s tapering of its long-term asset purchases has begun in earnest, with interest rates set to rise. As a result, the capital that flowed to emerging markets in the years of high liquidity and low yields in advanced economies is now fleeing many countries where easy money caused fiscal, monetary, and credit policies to become too lax. …
“But 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. The external risks and internal macroeconomic and structural vulnerabilities that they face will continue to cloud their immediate outlook. The next year or two will be a bumpy ride for many emerging markets, before more stable and market-oriented governments implement sounder policies.”
My Comment: New government will bring nothing new; there is a need for a new society, brought up on the basis of integral education. Governments should be advised of this, even before they might be replaced. The key to their salvation is in the transformation of society!