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 after default_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.