Two popular inflation indicators commonly monitored by analysts are the pace of real economic activity and the rate of growth of labor costs. It is widely believed that if the economy grows at a rate above its long-run potential or, if the rate of growth of labor costs exceeds the trend rate in...

The empirical test of the output gap-based New Keynesian Phillips curve often has been implemented by estimating a hybrid specification that includes both lagged and future inflation and then by examining whether the estimated coefficient on future inflation is significantly larger than the one...