The article compares two models to explain why inflation and output behave the way they do after changes in interest rates. One model uses lagged inflation and habits, while the other uses sticky information for firms, workers, and households. The sticky information model fits inflation slightly better, while the lagged inflation model with habits fits output better. However, the differences are not big enough to say one model is significantly better than the other. Sticky information might be a better explanation for how prices are set, but not necessarily for wages. Overall, sticky information needs to be applied to all sectors to accurately predict how the economy responds to changes in monetary policy.