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American Economic Review 2016, 106(1): 200227 http://dx.doi.org/10.1257/aer.20110865Real Rigidity, Nominal Rigidity, and the Social Value of Information By GeorgeMarios Angeles, Luigi Io vino, and

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Real rigidity nominal rigidity refers to the inflexible nature of certain economic variables, such as wages or prices, that do not adjust immediately to changes in economic conditions or policies.

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The purpose of real rigidity nominal rigidity is to analyze and report on the effects of price and wage stickiness on economic performance and policy effectiveness.

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Information that must be reported includes price levels, wage commitments, economic indicators, and compliance with economic policies affecting rigidity.

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