01932cas a2200265 a 4500 AALejournalIMF007080 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455218028 1018-5941 BD-DhAAL BD-DhAAL Ilzetzki, Ethan. How Big (Small?) are Fiscal Multipliers? / Ethan Ilzetzki, Enrique Mendoza, Carlos Vegh Gramont. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (66 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 We contribute to the intense debate on the real effects of fiscal stimuli by showing that the impact of government expenditure shocks depends crucially on key country characteristics, such as the level of development, exchange rate regime, openness to trade, and public indebtedness. Based on a novel quarterly dataset of government expenditure in 44 countries, we find that (i) the output effect of an increase in government consumption is larger in industrial than in developing countries, (ii) the fisscal multiplier is relatively large in economies operating under predetermined exchange rate but zero in economies operating under flexible exchange rates; (iii) fiscal multipliers in open economies are lower than in closed economies and (iv) fiscal multipliers in high-debt countries are also zero. Mode of access: Internet Mendoza, Enrique. Vegh Gramont, Carlos. IMF Working Papers; Working Paper ; No. 2011/052 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/052/001.2011.issue-052-en.xml IMF e-Library