The New Keynesian Model was applied to the euro area economy from 1999 to 2008. The model was estimated using the Generalized Method of Moments, capturing both backward and forward-looking behaviors of economic agents. Despite some limitations, the model accurately described economic activity, inflation, and monetary policy in the euro area. This suggests that the New Keynesian Model could be a useful tool for guiding government policies and the European Central Bank in the euro area.