Alan Budd: The credit squeeze can mainly be thought of as a negative force on the UK and European economies. That requires conventional offsetting policies by central banks but it also requires at the moment direct actions in credit markets because of the freezing of some markets. There is nothing new in principle about that but the particular problems are novel.

Economists Survey

The results in full
Q1: What are the 3 main risks to economic stability in 2008?
Q2: How does the credit squeeze change the job of central banks?
Q3: How deep will the correction be in the housing market?
Q4: How far is it possible to ignore short-term inflationary pressures?
Q5: What needs to be done with the public finances?
Q6: Are emerging economies the next global bubble?
Q7: To what extent will the US election affect the world economy?
Q8: Where will Northern Rock be this time next year?
2007 survey

Ian Plenderleith: No - counter-inflationary focus remains the same. The squeeze introduces new factors into the monetary judgement, but there are always new factors hoving into sight - as happened with the emerging markets crisis in 1997-8, and after the dotcom collapse. The job remains the same - taking it all into account in assessing the outlook for inflation.