Bils, Mark; Klenow, Peter J.; Kryvtsov, Oleksiy - In: Quarterly Review (2003) Win, pp. 2-9
Models with sticky prices predict that monetary policy changes will affect relative prices and relative quantities in … the short run because some prices are more flexible than others. In U.S. micro data, the degree of price stickiness … not. Short-run responses of relative prices have the wrong sign. And monetary policy shocks seem to have persistent …