01769cas a2200253 a 4500 AALejournalIMF006431 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455200702 1018-5941 BD-DhAAL BD-DhAAL Debrun, Xavier. Fiscal Policy and Macroeconomic Stability : Automatic Stabilizers Work, Always and Everywhere / Xavier Debrun, Radhicka Kapoor. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (46 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper revisits the link between fiscal policy and macroeconomic stability. Two salient features of our analysis are (1) a systematic test for the government's ambivalent role as a shock absorber and a shock inducer-removing a downward bias present in existing estimates of the impact of automatic stabilizers-and (2) a broad sample of advanced and emerging market economies. Results provide strong support for the view that fiscal stabilization operates mainly through automatic stabilizers. Also, the destabilizing impact of policy changes not systematically related to the business cycle may not be as robust as suggested in the literature. Mode of access: Internet Kapoor, Radhicka. IMF Working Papers; Working Paper ; No. 2010/111 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/111/001.2010.issue-111-en.xml IMF e-Library