Chinese spillovers may push global prices down- Finnish paper

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Spillovers from China’s economic slowdown may put further downward pressure on prices in advanced economies, a working paper published by the Bank of Finland argues.

In Win-Win? Assessing the global impact of the Chinese economy, Risto Herrala and Fabrice Orlandi use what they call a “novel indirect approach” to their subject. They apply this method to data from the International Monetary Fund’s world economic outlook from 2004 to 2015.

The authors find that an increase in China’s economic

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