This note applies H∞ methods to an estimated hybrid monetary policy model and derives standard and robust optimal interest rate rules. We find that the 'robust' central banker responds more aggressively than it does without concerns for robustness and that the responses of the state variables...

New evidence is provided on the fit of the hybrid Phillips curve based on indexation of prices to lagged inflation and trend inflation for the Euro area and the USA over the period 1970-2002. The GMM-West estimates suggest that (i) a full indexation scheme is not data consistent whereas a...

The New IS and Phillips curves state that output and inflation are purely forward-looking but this theory is conflicting with the empirical results. This note analyses how some augmented version of those curves, called hybrid IS and Phillips curves are more consistent with the data properties.