BOSTON, the United States -- China can deal with inflation and still manage a rapid economic growth, said Olivier Blanchard, the chief economist of the International Monetary Fund (IMF).

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"The inflation (in China) is controllable," Blanchard told Xinhua at an economic policy panel in the Massachusetts Institute of Technology (MIT).

He also said the world was experiencing a "two-speed recovery," with developing countries growing at a faster pace than developed countries.

However, the economist said for some of the countries growing at a quite rapid speed, the challenge is to limit inflation in the medium term.