// definition
Fiscal multiplier
Output response to a fiscal policy measure
Short definition
The change in GDP attributed to a discretionary fiscal measure divided by the change in public spending or taxation that prompted it, relative to a baseline. The sign convention, horizon and calculation method must be specified. Its value depends on the policy instrument, economic conditions and the monetary policy setting, among other factors.
risk atlas
Knowledge map
Intuition
The output response depends on the measure’s composition and the adjustments it triggers.
Related analyses
Primary sources
- IMF, Fiscal MultipliersTechnical Note 14/04, introduction and Box 1: definitions, policy instruments and measurement horizons.
- French Treasury and OFCE, ThreeME and Mésange comparisonWorking Paper 2026/1, sections 2.2 and 2.3: public expenditure and VAT experiments. French-language source.