Setting $escape_html to TRUE will escape all template
variable output by wrapping it in
htmlspecialchars({$output}, ENT_QUOTES, SMARTY_RESOURCE_CHAR_SET);,
which is the same as {$variable|escape:"html"}.
Template designers can choose to selectively disable this feature by adding the nofilter flag: {$variable nofilter}.
Modifiers and Filters are run in the following order:
modifier,
default_modifier,
$escape_html,
registered variable filters,
autoloaded variable filters,
template instance's variable filters. Everything except the individual modifier can be disabled with the nofilter flag.
This is a compile time option. If you change the setting you must make sure that the templates get recompiled.