For monetary policy to be effective, prices must be sticky

If prices were perfectly flexible, an expansionary monetary policy would simply drive up prices and would not have any impact on production in volume terms. Price stickiness is therefore necessary for an expansionary monetary policy to be effective. As a result of this mechanism, sectors where prices are stickier than in other sectors benefit more from expansionary monetary policies. This means that in the euro zone, the sectors that benefit the most from the expansionary monetary policy (and therefore where prices are the stickiest) are manufacturing industry and household services, while those that benefit the least are construction and business services .