Sticky (economics)

When we talk about sticky in economics, we are referring to something that doesn't change quickly or easily. Think of peanut butter - it's sticky and doesn't easily slide off your fingers, right?

In economics, sticky refers to things like prices, wages, and interest rates that don't change quickly or easily, even when the conditions around them change. For example, if the economy is doing really well and there is a lot of demand for workers, you might expect wages to go up quickly. But in reality, wages might stay the same for a while because they are sticky - they don't change easily or quickly.

Similarly, if the central bank decides to lower interest rates to encourage people to borrow and spend more money, we might expect lending rates to go down quickly. But again, this might not happen because lending rates are sticky - they don't change easily or quickly.

So, when we talk about something being sticky in economics, we mean that it is resistant to change even when we might expect it to change based on the conditions around it.