01833cas a2200265 a 4500 AALejournalIMF011913 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475504217 1018-5941 BD-DhAAL BD-DhAAL Muller, Gernot. What Determines Government Spending Multipliers? / Gernot Muller, Andre Meier, Giancarlo Corsetti. Washington, D.C. : International Monetary Fund, 2012. 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 This paper studies how the effects of government spending vary with the economic environment. Using a panel of OECD countries, we identify fiscal shocks as residuals from an estimated spending rule and trace their macroeconomic impact under different conditions regarding the exchange rate regime, public indebtedness, and health of the financial system. The unconditional responses to a positive spending shock broadly confirm earlier findings. However, conditional responses differ systematically across exchange rate regimes, as real appreciation and external deficits occur mainly under currency pegs. We also find output and consumption multipliers to be unusually high during times of financial crisis. Mode of access: Internet Corsetti, Giancarlo. Meier, Andre. IMF Working Papers; Working Paper ; No. 2012/150 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/150/001.2012.issue-150-en.xml IMF e-Library