TY - BOOK ID - 84543184 TI - Fiscal Policy and Macroeconomic Stability : Automatic Stabilizers Work, Always and Everywhere AU - Debrun, Xavier. AU - Kapoor, Radhicka. AU - International Monetary Fund. PY - 2010 SN - 1462323456 1452758115 128355609X 1455200174 9786613868541 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Economic stabilization KW - Fiscal policy KW - Econometric models. KW - Tax policy KW - Taxation KW - Economic policy KW - Finance, Public KW - Adjustment, Economic KW - Business stabilization KW - Economic adjustment KW - Stabilization, Economic KW - Government policy KW - Banks and Banking KW - Macroeconomics KW - Public Finance KW - Comparative or Joint Analysis of Fiscal and Monetary Policy KW - Stabilization KW - Treasury Policy KW - Fiscal Policy KW - National Government Expenditures and Related Policies: General KW - Central Banks and Their Policies KW - Public finance & taxation KW - Banking KW - Automatic stabilizers KW - Expenditure KW - Fiscal stabilization KW - Central bank autonomy KW - Expenditures, Public KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84543184 AB - 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. ER -