Abstract. BRIC – Brazil, Russia, India and China – were, in the recent past, not only considered to be the largest and fastest growing economies amongst the emerging markets but also the engines of global economic growth. However, since 2012 cracks have emerged in this narrative. With negative, decelerating and insufficient GDP growth, the BRIC countries are floundering. This paper attempts to identify the causes, policy responses and challenges emanating from these policies for each of the BRIC economies using the post- Keynesian, Structural Financial Balances framework. The study draws attention to the importance of fiscal policy as a short-term macroeconomic policy option.

Keywords: Brazil, Russia, India, China, BRIC, fiscal policy, recession, economic growth, macroeconomic policy, deleveraging.