Inflation, not credit crunch, is top concern worldwide: Paulson

Inflation, and not the credit crunch, is the biggest economic concern worldwide, especially in developing countries, US Treasury Secretary Henry Paulson said in an interview Thursday.

Speaking to the BBC on a visit to London, Paulson also said the comparison of the current economic climate in the United States to the Great Depression in the 1920s and 1930s was “hyperbole”.

Asked by the broadcaster whether the credit crunch or price rises were more of an issue, he said: “When you look around the world broadly, I think inflation … is getting the number one focus, when you look at emerging markets, whether its China, or Russia.”

AFP