In this respect, housing rent has continued to make positive contributions to the CPI for Tokyo's 23 wards as a trend since around the middle of 2018 against the backdrop of the recent uptrend in land prices. On a nationwide basis, the contributions turned positive for the first time in 11 years in the CPI for November 2019.
Second, the New Neoclassical Synthesis suggests that only those prices that move sluggishly, referred to as sticky prices, should be stabilized. Indeed, these models indicate that monetary policy should try to get the economy to operate at the same level that would prevail if all prices were flexible – that is, at the so-called natural rate of output or employment.