Takaaki Sagawa

I am a fifth-year Ph.D. student in Economics at Northwestern University. My research focuses on empirical macroeconomics and macro-finance. In particular, I examine how financial markets and the policies governing them shape macroeconomic dynamics, both within and across borders.

Previously, I worked as a research assistant at the Stanford Law School and the World Bank. I have a B.Sc. in Econometrics and Mathematical Economics from the London School of Economics.

Working Papers

Sovereign Liquidity Shocks Revise & Resubmit at Journal of Monetary Economics Paper | Appendix

This paper estimates the macroeconomic effects of changes in sovereign risk. I identify a novel series of shocks using high-frequency movements in asset prices around International Monetary Fund announcements, which I characterize as sovereign liquidity shocks. Using this series, I estimate the dynamic causal effects of changes in sovereign risk on macroeconomic variables. A sovereign liquidity shock associated with a 100-basis-point increase in sovereign spreads decreases output by 0.96 percent in the months following the shock, with the contraction primarily driven by declines in investment, as well as disruptions in international corporate lending and trade.

Works in Progress

The Macroeconomics of Regulatory Safe Asset Demand Job Market Paper
Revisiting the Lucas Puzzle: The Composition of Global Capital Flows with Yudan Ying
Stablecoin Shocks with Eugenio Cerutti, Melih Firat, and Martina Hengge