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This note * addresses the following issues: • What are fiscal multipliers? • Why are multipliers important for macroeconomic projections and policy design? • What do we know about the size and persistence of multipliers? • What are the determinants of multipliers? • In countries where data availability limits the scope for empirical research, how to come up with multiplier estimates? • How to incorporate multipliers in macroeconomic projections? 1 This note refers to multipliers as one-year multipliers unless otherwise stated. In addition, all the following terms are synonyms: (exogenous) fiscal shock, fiscal impulse, and discretionary change in fiscal policy.

Euro area, Europe, Inflation persistence, HICP, Monetary transmission, Aggregation bias, E4-E5,

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