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1.    Evaluate the effects of an austerity fiscal programme in a situation when a government is running negative primary deficits, the nominal interest rate is close to zero, the real GDP is growing, after a period of a prolonged recession and the inflation rate is close to zero.
2.    Discuss how your answer may change if the country falls into a deflationary spiral.  
3.    Briefly discuss Fisher’s Debt-Deflation hypothesis and the Post-Keynesian development



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