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End of Easing Wouldn't Affect Emerging Markets: Mobius

If central banks ended their easy money policies it would have no effect on emerging markets — unless the banks reduced the amount of money in circulation, Mark Mobius told CNBC's Squawk Box Wednesday.

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"The end of quantitative easing" in the U.S., for instance, "would not be a problem," said the executive chairman of the Templeton Emerging Markets .

It would be a problem if the Federal Reserve decided to "take money off the table...Then that would be a problem for everybody" because it would limit investment in equities and bonds around the world.

"I doubt that will happen," Mobius added. "I think [Fed Chairman Ben] Bernanke has still got his foot on the pedal and wants to make sure the unemployment comes down. That’s true of other countries around the world. The Europeans, the Japanese, the Chinese want to see good growth although they are cautious about inflation."

Emerging markets continue to outperform in spite of the problems in the developed world. For instance, China, struggling to slow down its economy, is still aiming at a target of 7.5 percent growth, Mobius said.

Russia would be his pick for investment because it has been "beaten down, it has not really performed that well, the valuations are very good and the political picture is getting better. I might pick Russia, then China after that."

As an investor, today's earthquakes in Indonesia "doesn't affect us very much" aside from some coal mining in the south of Sumatra, said Mobius, because most of his investments in that country are in Java.