Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve

@article{Mankiw2001StickyIV,
  title={Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve},
  author={N. Gregory Mankiw and Ricardo Ferreira Reis},
  journal={Monetary Economics},
  year={2001}
}
This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly throughout the population. Compared to the commonly used sticky-price model, this sticky-information model displays three, related properties that are more consistent with accepted views about the effects of monetary policy. First, disinflations are always contractionary (although announced disinflations are less contractionary than surprise ones). Second, monetary policy shocks… 
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