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Government Think Tank: Developed Countries May Transfer Crises to Emerging Markets

Zhang Yansheng, head of the Research Institute of Foreign Economic Relations under the National Development and Reform Commission warned developing countries that developed countries may get out of the current crisis at the  expense of emerging markets. Particularly, he wrote, “There are many ways for developed countries to transfer crises [to developing countries]. They can create bubbles and trade friction among developing countries. They can instigate financial instability through printing money and lowering interest rates, and they can use a variety of economic means to suppress emerging economies. When developed countries rise again, the bubbles in emerging economies will burst, which will plunge them into a prolonged recession. Historically, developed countries have invariably transferred and gotten out of crises at the expense of emerging economies.”

Source: Xinhua, January 9, 2012