# Credit Crunch affect on inflation?



## Ethan 1 (18 Oct 2008)

What influence will the credit crunch have on the short to medium term rate of inflation and by extension interest rates? Not wishing to seem too dramatic, but IMHO with the level of liquidity being pumped into the world financial system currently, in the near future, should we not see the rate of inflation spike, followed by central bank interest rates?


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