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Central bankers have managed to steer the world economy clear of a recession while leaving it stuck in the same rut that led to its troubles in the first place."The global economy will continue to muddle along," said Charles Collyns, chief economist for the Institute of International Finance in Washington and a former U.S. Treasury official. He sees growth this year of about 2.5 percent – the same as in 2015 and well short of the 3.7 percent average over the five years leading up to the global financial crisis.Still, muddling through looks pretty good compared with the nasty combination of events that investors dreaded was in store earlier this year: A Chinese hard landing and steep currency devaluation, a U.S. recession and a global downturn comparable to 2008 and 2009 .In the U.S., the Fed's move to roll back its planned rate increases could mean that it will have to speed them up later if inflation picks up faster than the central bank expects, said Peter Hooper, chief economist for Deutsche Bank Securities in New York. That risks sparking renewed turmoil in financial markets by highlighting the Fed's policy divergence with the ultraeasy stances of the ECB and Bank of Japan.
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