The authors of this Bank of Canada Working Paper examine the evidence that the inflation dynamics in the United States can be well-described by the New Keynesian Phillips curve (NKPC). They find that the empirical evidence for the real marginal cost is rather weak. Specifically, they show that results are sensitive to the instrument sets, normalization, estimators, sample period, and data revisions.

Click here to read the Working Paper "The U.S. New Keynesian Phillips Curve: An Empirical