Wataru Miyamoto is a Senior Analyst in the Canadian Economic Analysis Department at the Bank of Canada. His research interests include empirical macroeconomics and international macroeconomics. He received his Ph.D. in Economics from Columbia University. He is the Bank of Canada’s Top Research Award recipient for 2017.
Using a rich data set on government spending forecasts in Japan, we provide new evidence on the effects of unexpected changes in government spending when the nominal interest rate is near the zero lower bound (ZLB).
Business cycles are substantially correlated across countries. Yet most existing models are not able to generate substantial transmission through international trade. We show that the nature of such transmission depends fundamentally on the features determining the responsiveness of labor supply and labor demand to international relative prices.
Using a novel data set for 17 countries dating from 1900 to 2013, we characterize business cycles in both small developed and developing countries in a model with financial frictions and a common shock structure. We estimate the model jointly for these 17 countries using Bayesian methods.