Abstract
In this paper, we examine parameter identication in the hybrid specication of the New Keynesian Phillips Curve proposed by Gali and Gertler (1999). We employ recently developed moment-conditions inference procedures, which provide a more e¢ cient and reliable econometric framework for the analysis of the NKPC. In particular, we address the issue of parameter identication, obtaining robust condence sets for the models parameters. Our results cast serious doubts on the empirical validity of the NKPC.