On the other hand, the sticky information model suggests that, once longterm inflation expectations become de-anchored, their return to a level consistent with price stability may take time and effort on the part of the central bank.
Ricardo and Gregory Mankiw constructed and estimated a complete dynamic stochastic general equilibrium model with sticky information.6 Their DSGE model features what the authors refer to as “pervasive stickiness”: the idea that information sets are updated sporadically, which originally applied to price-setting firms, is extended here to include consumers and workers.