# The rule of monetary policy for model with flexible prices and sticky wages

**URL:** https://forum.dynare.org/t/the-rule-of-monetary-policy-for-model-with-flexible-prices-and-sticky-wages/21157
**Category:** General DSGE Modeling
**Created:** [5 October 2022 07:12 UTC](https://forum.dynare.org/t/the-rule-of-monetary-policy-for-model-with-flexible-prices-and-sticky-wages/21157 "2022-10-05T07:12:31Z")
**Posts on this page:** 3
**Page:** 1

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### Author: ![Leonid\_65](https://forum.dynare.org/letter_avatar_proxy/v4/letter/l/85e7bf/32.png) [@Leonid\_65](https://forum.dynare.org/u/Leonid_65)
#### Post date: [5 October 2022 07:12 UTC](https://forum.dynare.org/t/the-rule-of-monetary-policy-for-model-with-flexible-prices-and-sticky-wages/21157/1 "2022-10-05T07:12:31Z")

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Dear, Pfeifer,  
What should be the rule of monetary policy for model with flexible prices and sticky wages.  
I can’t find a link to this anywhere.  
Thank you,  
Leonid.

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### Author: ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [7 October 2022 07:32 UTC](https://forum.dynare.org/t/the-rule-of-monetary-policy-for-model-with-flexible-prices-and-sticky-wages/21157/2 "2022-10-07T07:32:13Z")

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What do you mean? Monetary policy would still react to inflation in a Taylor type rule.

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### Author: ![Leonid\_65](https://forum.dynare.org/letter_avatar_proxy/v4/letter/l/85e7bf/32.png) [@Leonid\_65](https://forum.dynare.org/u/Leonid_65)
#### Post date: [7 October 2022 07:52 UTC](https://forum.dynare.org/t/the-rule-of-monetary-policy-for-model-with-flexible-prices-and-sticky-wages/21157/3 "2022-10-07T07:52:11Z")

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Thanks for your prompt reply, jpfeifer!