(1’)  w = a + q* - b U + pe  The implications of this modification in the model can best be seen by substitution of 1’ into 2 and solving for the revised specification of the price-price Phillips curve, equation 3’.
This is in line with the mandate given to the BOU under the Financial Institutions Act, which priorities the safety of deposits. In that regard I do not understand why the Economic Update should have concluded that there are “low levels of public confidence in formal financial institutions” which discourage the public from holding bank deposits.