The defining feature of the New Keynesian model is that goods prices are adjusted infrequently. In the one-sector version of the model, goods are intrinsically homogeneous and should trade at the same price. By targeting inflation, monetary policy can achieve the efficient allocation. In the network version of the model, sectoral shocks call for an adjustment of relative prices and give rise to a trade-off between adjusting relative prices across sectors and maintaining price stability within

Tag-uri: Inflatie