To sum up, services deepening implies that monetary policy takes more time to be transmitted to inflation, but its effectiveness has not diminished. This is also true for the impact of monetary policy on growth and employment, as you can see on the right-hand side. In a nutshell, there are two opposing forces at work.
On the one side, services are, on average, less interest-rate sensitive – that is, the IS curve is flatter, which in principle makes a service-based economy less responsive to monetary policy. But because prices are now more rigid on the whole, more of the adjustment in the economy needs to happen through changes in quantities rather than prices.