There is no general answer to this. Do you want to build a normative or a positive/descriptive model? In terms of welfare, the sticky price sector may be the one to target, but actual central banks focus more on total output
There is no general answer to this. Do you want to build a normative or a positive/descriptive model? In terms of welfare, the sticky price sector may be the one to target, but actual central banks focus more on total output