The Fed's decision to begin tapering based on how the US economy is recovering is having effects not only on US markets but also on global ones. When U.S. interest rates were low, investors sought the higher returns they found in emerging markets. When the Fed began tapering, investors began withdrawing their money from these emerging markets and putting it back into the US markets, which caused emerging market currencies to collapse. (De Groote) Contagion is “the probability that significant economic changes in one country will spread to others”. (Contagion) Emerging markets are struggling at the moment. According to Luis Alberto Moreno, president of the Inter-American Development Bank, “emerging markets, especially in Latin America, are much better at managing economic crises than prosperity.” (Naím) Because emerging markets did not manage their prosperity well when the United States was in recession and the Fed used quantitative easing and low interest rates to help boost the economy, they are now suffering as investors withdraw their their money while the American economy is in crisis. resuming. The United States is not the only country having an effect on emerging markets. As “the Chinese government attempted to cool a dangerously overfed economy,” the slower growth resulted in decreased export earnings for emerging markets and reduced demand for raw materials consumed by the giant country. (Naím)According to Naím, “Stock markets in the United States, Europe and Japan just recorded their worst earnings since January 2010, a tell-tale sign that the crisis in emerging markets has already hit developed countries.” At the moment, experts believe it is unlikely that the crisis that emerging markets are experiencing will turn into a full-blown... half of paper... TURKEY." International reserves and foreign currency liquidity - TURKEY. Np, nd Web. February 16, 2014.6. “An Explanation of Fed Tapering and Its Impact on Markets.” About.com Bonds, nd Web Markets Are Falling: Should We Worry? The Atlantic. Atlantic Media Company, 05 February 2014. Web. 15 February 2014.8. “National Debt in Türkiye in Relation to Gross Domestic Product (GDP) 2013.” Statesman. Np, nd Web. 16 February 2014.9. "ECONOMICS OF TRADING" Np, nd Web. 16 February 2014.10. “Turkey's Annual GDP Growth Rate.” Government budget." TRADING ECONOMICS. Np, nd Web. February 17, 2014.12. Zumbrun, Joshua. "Plosser says tapering delay undermined Fed credibility." Bloomberg.com. Bloomberg, October 8, 2013. Web. 17 February. 2014.