According to Monacelli (2009), augmenting a standard New-Keynesian model with credit
frictions can help to solve the outstanding challenge to generate a joint decline of durable
and non-durable consumption during a monetary tightening. This paper shows that his
success in generating positive comovement between durables and non-durables is solely due
to assumptions about price-stickiness in the durable goods sector. It also explains why the
introduction of credit frictions actually makes the comovement problem more severe.