What do sticky and flexible prices tell us?

Millard, Stephen; O'Grady, Tom
August 2012
Bank of England Quarterly Bulletin;2012 3rd Quarter, Vol. 52 Issue 3, p248
Academic Journal
The article discusses the results of inflation persistence arise. It mentions that inflation persistence may occur because the prices of different components of the consumer prices index (CPI) change at different speeds. It further suggests that calculations of flexible price inflation could be used to provide monetary policy makers with a steer on the current state of the economy.


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