Question: 1. What impact would there be from a fall in exogenous cost pressures and a lower expected inflation rate on the expectations-augmented Phillips curve (EAPC)?

1. What impact would there be from a fall in exogenous cost pressures and a lower expected inflation rate on the expectations-augmented Phillips curve (EAPC)?

2. Was the impact of the financial crisis on interest-rate differentials any different from that which might be assumed in financial accelerator models when real national income falls?

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