Interpreting the evidence for New Keynesian models of inflation dynamics

► A coherent framework for interpretation of empirical NKPC models of inflation. ► The implications of the joint econometric evidence may contradict the NKPC. ► The joint evidence supports many solutions, some non-stationary and explosive. ► Non-stationarity refutes assumptions of econometric models used to estimate NKPCs. ► Improved methodology needs to allow for alternative models and structural breaks.