Wages and prices might both be sticky. But if only wages were sticky, then At all horizons, we would be seeing Boom prices going up more than wages, Bust prices going down more than wages, Real wages countercyclical. But at a 2-year horizon we see Real wages go up in booms down in busts: Think wages going up more than prices, Or wages going down more than prices. If wages move more than prices, that says At least some prices must be sticky and Therefore that there must be some price setters. I think there are some flexible prices That move faster than wages and other Much stickier prices that move slower. And that's before we look past the surface Of observed wages and think more deeply About shadow wages workers and firms Govern hours by when both sides are nice. Shadow wages should be quite flexible.