Many macroeconomic models (including the NKPC - "New Keynesian" Phillips Curve) involve hybrid equations, in which some variables depend on both their lags and leads. Hybrid models have produced conflicting empirical results: GMM (respectively ML) estimation find the forward- looking component...

We estimate two small macroeconomic models with forward-looking components, for the US and Germany. The models, which include a Phillips curve, an I-S curve and a monetary policy rule, are estimated using the full-information maximum-likelihood procedure. They are shown to have some robustness...

The "New Keynesian" Phillips Curve (NKPC) states that inflation has a purely forward-looking dynamics. In this paper, we test whether European and US inflation dynamics can be described by this model. For this purpose, we estimate hybrid Phillips curves, which include both backward and...

Estimating a forward-looking monetary policy rule by the Generalized Method of Moments (GMM) has become a popular approach since the influential paper by Clarida, Gali, and Gertler (1998). However , an abundant econometric literature underlines to the unappealing small- samples properties of GMM...