We look at how large international datasets can improve forecasts of national activity. Weuse the case of New Zealand, an archetypal small open economy. We apply “data-rich” factorand shrinkage methods to tackle the problem of efficiently handling hundreds of predictordata series from many...

This paper investigates the transmission of US macroeconomic shocks to Germany by employing a large-dimensional structural dynamic factor model. This framework allows us to investigate many transmission channels simultaneously, including 'new' channels like stock markets, foreign direct...