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This note explores some key aspects of China?s economic rise and the spillovers to the rest of the world that this rise has created. It then examines, using the Federal Reserve Board?s large-scale global model (SIGMA), the potential consequences for the global economy were China?s economy to slow sharply. Although the probability of such an event is low, a sharp slowdown of Chinese economic growth could have significant consequences for the global economy.

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China's Footprints on the Global Economy: Remarks Delivered at the Second IMF and Federal Reserve Bank of Atlanta Research Workshop on the Chinese Economy