The International Monetary Fund (IMF) criticized developing countries today for not responding strongly enough to the surge of hot money into their markets, saying the result could be a hard economic landing, Reuters reported.

The IMF said in a note to Group of 20 major economies that huge inflows of speculative capital had sped up economic growth in emerging markets but also pushed up inflation, and the responses by developing countries’ governments had “been insufficient to address these rising pressures, portending risks of a hard landing.”

The IMF said emerging market economies have tried to slow the flows through a combination of macroeconomic policies as well as capital control measures, but are delaying additional responses, such as raising interest rates.

Countries such as Brazil have pushed back, blaming near-zero interest rates in the United States for sending investors elsewhere in search of returns, and telling the IMF to pay closer attention to the source of the flow. Brazil has resisted efforts to restrict the use of capital controls.

Meanwhile, the IMF said the recovery in advanced economies was moving too slowly.