. Second, there are important differences in the size of fiscal multipliers depending
on the particular fiscal measure being used to stimulate the economy, with government
investment and consumption expenditures having the largest effects, followed by targeted
transfers and consumption taxes, while cuts in labor income taxes, capital income taxes,
and general transfers have the smallest multipliers. Third, monetary accommodation plays
a very important role in increasing fiscal multipliers. Fourth, multilateral actions taken by a
number of economic areas increase the size of the multipliers in every area as spillovers that
are relatively small with respect to any single economic area accumulate to an appreciable
size as more and more economic areas participate in the fiscal stimulus.