Miyamoto, Wataru; Nguyen, Thuy Lan; Sergeyev, Dmitriy - 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). The on-impact output multiplier is 1.5 in the ZLB period, and 0.6 outside of it....