While the E7 countries have recorded very impressive recent economic growth, their ability to use monetary and fiscal policy to help steer future economic growth varies considerably. According to recent research done by The Economist, some of the E7 are in a good position to use monetary and fiscal policy to help shape their economy. The Economist has devised a "wiggle room index" which ranks emerging economies on how much monetary and fiscal flexibility they have. India, Turkey and Brazil are in the red zone (not much wiggle room), Mexico is in the middle of the pack while China, Indonesia and Russia each have plenty of wiggle room.
Rising CO2 emissions from China and India are a concern. Hopefully the Environmental Kuznets Curve (EKC) hypothesis applies to the E7. The EKC postulates a long-run curvilinear relationship between carbon dioxide emissions and income. At first, emission rise with increases in income, but after some inflection point emissions begin to decline.