Millard, Stephen; O'Grady, Tom - Bank of England - 2012
of this paper suggest that calculations of ‘flexible-price’ inflation could, potentially, be used to provide monetary … policy makers with a steer on the output gap, which is notoriously hard to measure, and that calculations of ‘sticky-price …’ inflation could, potentially, be used to provide monetary policy makers with a steer on the medium-term inflation expectations …