US and Europe Must Support BRIC Recovery
Jim O'Neill, Goldman Sachs | August 12, 2011
The world economy now depends less on the leadership of the US and Europe, and more on the domestic consumption of large developing markets. ++ Western policymakers should be wary of new monetary stimulus, as a weaker dollar could raise inflation rates in the BRIC countries, slowing the growth of their domestic demand. ++ To support high consumption in emerging markets, Western leaders should keep commodity prices low, because BRIC growth offers the only “plausible means by which they can recover from their current mess.”
