Pervasive Stickiness

摘要

This paper explores a macroeconomic model of the business cycle in which stickiness of information is a pervasive feature. Prices, wages, and consumption are all assumed to be set, to some degree, based on outdated information sets. We show that a model with such pervasive stickiness is better at matching some key facts describing economic fluctuations than is either a benchmark classical model without such informational frictions or a model with only a subset of these frictions.