01787cas a2200265 a 4500 AALejournalIMF008519 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451859287 1018-5941 BD-DhAAL BD-DhAAL Silgoner, Maria. The Fiscal Smile : The Effectiveness and Limits of Fiscal Stabilizers / Maria Silgoner, Jesus Crespo-Cuaresma, Gerhard Reitschuler. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (30 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 study the smoothing impact of fiscal stabilizers (proxied by government expenditures or revenues) on business cycle volatility for a panel of EU countries in the period 1970-99. The results show that the business cycle volatility smoothing effect of fiscal stabilizers may revert at high levels. We present evidence that for government expenditure ratios exceeding an estimated value of about 38 percent, a further expansion in the size of the government could actually lead to an increase in cyclical volatility. This may call for a reconsideration of the use of fiscal stabilizers for business cycle smoothing. Mode of access: Internet Crespo-Cuaresma, Jesus. Reitschuler, Gerhard. IMF Working Papers; Working Paper ; No. 2003/182 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/182/001.2003.issue-182-en.xml IMF e-Library