In particular, there is a large and growing body of evidence that shows that prices in the services sector are considerably “stickier” than in all other sectors in the economy – that is, they adjust less frequently.17 Take the micro evidence presented by the Eurosystem’s Inflation Persistence Network.
The essence of complexity theory is that rather than view the system as in equilibrium, it views the economy as a complex adaptive system perpetually constructing itself. And in this context, it is worth asking why have we got to this circumstance, and how the system will continue to reconstruct itself, either by accident or design?