Ghost imaging and interference using squeezed thermal light are investigated. We show that squeezed thermal light can have a very strong photon-bunching effect in the region of very weak squeezing and thermal excitation. As a result, the visibility of the image and interference pattern can be greatly enhanced and raised to be much higher than the limitation 1/3 to thermal light. In the squeezed vacuum case, especially, the visibility can approach to the level of entangled photon pairs from spontaneous parametric down-conversion. The present investigation may open a new potential application of squeezed light.
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