I discuss the importance of this distinction in Powell (2018). -6slack, inflation last year, and some other factors that I will leave aside for this discussion (figure 4): 7 Inflation(t) = -B Slack(t) + C Inflation(t - 1) + Other(t). The value of B is often referred to as the slope of the Phillips curve.
The member states of the European Union are bound together too closely for that. Even if there have been missteps in the handling by European institutions of the Irish crisis – as for some others – I prefer to see this as teething problems.