Abstract
The author introduces an approach for a consensual economic policy for a group of rapidly developing countries as a response to contemporary global economic challenges. This article reconsiders the problems of international economic integration in the period of deglobalization. The author puts forward the hypothetical model of a debt market of BRICS-bonds. The paper discusses approaches to servicing government debt and budget deficits in the BRICS based on the shared framework of financial and economic institutions. The author formulates the possibilities of a shared economic policy in the BRICS that could help overcome the consequences of the crisis caused by COVID-19. The author proposes a unique budget deficit optimization approach for the BRICS. The article evaluates the options for automatic and state-run budget deficit services and identifies the optimal level of taxation and the average weighted tax rate for the BRICS. The author investigates the potential of the BRICS to use financial resources of the shared debt market based on the gradualist approach for a consensual economic policy.
Highlights
The author proposes that the BRICS should try to establish a shared debt market to deal with government bond instruments
According to the model constructed, this alternative option cannot be achieved within one year since it would have required unrealistically high growth rates in the BRICS
The Maastricht Treaty of the EU mandated the criteria, which must be met by the member states of the Eurozone that use the euro as the common currency
Summary
A Debt Market Model for the BRICS. Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations.
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