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Economy

Acalin and Zilinsky -- How shaky is the American economy?

A pessimistic narrative about the U.S. economy is widespread. If it is true that economic growth will decelerate in the United States, the repercussions for the rest of the world would be severe. Slower growth in the U.S. would reduce demand for products exported by emerging markets as well as lower commodity prices -- which have already fallen sharply -- and make capital flows more volatile. Moreover, investors often view bad news in the U.S. as presaging broader problems for the global economy.

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