Thursday, March 10, 2016
Roubini: "Europe will be the epicenter of the financial turmoil this year"
Nouriel Roubini, professor of economics at New York University, has argued in recent weeks that the fall in global stock markets does not correspond with the advent of a new global recession. Volatility have seized financial markets for a number of important risks, but hardly will lead to a new recession. Still, this can be a year of turbulence, and the Eurozone has every chance to be the epicenter of this financial turmoil.
Roubini notes in Project Syndicate that "now there are seven risks that can complicate the current period of current volatility ... The first is the landing of the Chinese economy and its impact on the stock market. But more likely is that china's economy has a bumpy landing rather than a hard landing, investors are not yet entirely peaceful as economic growth slows and capital flight is maintained. "
The second point to the professor at the University of New York are the emerging countries, "which are a serious problem." China consumes less raw materials, their currencies are depreciating strongly, inflation continues to grow and have started to record large current account deficits.
Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics