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Price stickiness is the resistance of a market price to change quickly, despite shifts in the broad economy suggesting a different price is optimal. In economics, nominal rigidity—also referred to as price stickiness or wage stickiness—describes a situation in which a nominal price is slow to adjust or What Should the Monetary Authority Do When Prices Are Sticky?
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Our model does imply that there is an optimal interest rate rule, which takes a simple form. Since the price level never changes under optimal policy, the. shop stationery here: What does it mean to characterize prices as sticky? O O That prices do not change very easily. That the aggregate price level tends to fluctuate
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