summarized as follows. First, firms that regularly check and change prices (rigid pricing) account for a majority of all firms …, but the number of firms that check and change prices (only) when there is a factor causing price changes (flexible pricing …. Third, firms cite the following as the top reasons for difficulties in changing prices: the value placed on long …

the real sector variable in the feedback rule. We build a DSGE model with sticky prices and wages and unemployment … components of welfare loss function. Therefore, responding to unemployment growth mitigates inefficiencies from sticky prices and …