The US Federal Reserveâs decision to pump an extra $600bn into the economy has galvanized emerging market central banks into preparing defensive measures and sparked criticism from leading global economies. The Fedâs initiative, in response to rising concern about the weakness of the US economy, has fuelled fears of a sharp drop in the dollar and a fresh flood of capital inflows into emerging markets. China, Brazil and Germany on Thursday criticised the Fedâs action a day earlier, and a string of east Asian central banks said they were preparing measures to defend their economies against large capital inflows. Guido Mantega, the Brazilian finance minister who was the first to warn of a âcurrency warâ, said: âEverybody wants the US economy to recover, but it does no good at all to just throw dollars from a helicopter.â Mr Mantega added: âYou have to combine that with fiscal policy. You have to stimulate consumption.â Germany also expressed concern. An adviser to the Chinese central bank called unbridled printing of dollars the biggest risk to the global economy and said China should use currency policy and capital controls to cushion itself from external shocks. http://www.ft.com/cms/s/0/981ca8f4-e83e-11df-8995-00144feab49a.html Congratulations FED. You have the most powerful economies brought up against you. Welcome capital controls.