The Effect of Data Revisions on the Basic New Keynesian Model

► A version of the New Keynesian model with revision processes of data is analyzed. ► The role of data revisions on the estimated policy parameters is assessed. ► Results show that real-time data of output and inflation are not rational forecasts. ► Ignoring this feature is not a serious drawback for monetary policy analysis. ► Transmission of inflation-push shocks is affected by considering data revisions.