Millard, Stephen; O'Grady, Tom - Bank of England - 2012
In this paper, we investigate the information content of prices in relatively sticky-price sectors versus relatively … develop a simple DSGE model with a sticky-price sector and a flexible-price sector and use this model to show that these … policy makers with a steer on the output gap, which is notoriously hard to measure, and that calculations of ‘sticky-price …