Approaches to Institutionalise the Virtual Market of the BRICS
- 10.2991/aebmr.k.200312.426How to use a DOI?
The purpose of this article is to find potential approaches to establishing institutions of the mutual common use by the BRICS. The topic is time-relevant, because there is a need to look for ways which could help create the toolkit to make a consensus at the international level without establishing groupings such as the EU. The author believes that this process should be driven only by economic and geopolitical (or geo-economic) benefits for the countries participating in the integration agreements. It means that there is a necessity to develop the norms which would ensure the effectiveness of the decision-making process at the international level. The theoretical significance of the article’s outcomes is that it lays the foundation to the concept of the BRICS as organised in a form of a contractual state. The results are recommended in the practice of establishing integration groupings on the basis of the virtual market. To prove the practical significance of the results the author has conducted the calculations of a debt service mechanism based on the common virtual market of the BRICS which allows to finance the deficits at the virtual market’s loan rate. One of the principles identified as effective to implement the virtual debt market mechanism of the BRICS is to use a gradualist approach to harmonising the common rate of debt service, since the instant transition to common macroeconomic policy will create an inflationary bubble as a result of slashing interest rates.
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - M V Zharikov PY - 2020 DA - 2020/03/17 TI - Approaches to Institutionalise the Virtual Market of the BRICS BT - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2020) PB - Atlantis Press SP - 2989 EP - 2994 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200312.426 DO - 10.2991/aebmr.k.200312.426 ID - Zharikov2020 ER -