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Current vs. Structural Budget Balance Tutorial: Is the Government Debt Out of Control?

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Current vs. Structural Budget Balance
 The current balance of the budget is
the measured value each year of taxes
minus expenditures
 The structural balance (sometimes
called the cyclically adjusted
balance) is the current balance minus
the contribution of automatic stabilizers
 The structural balance shows what the
budget balance would be under current
laws in force if the output gap were
zero, that is, if the economy were at full
employment
November 30, 2015 Ed Dolan’s Econ Blog

Published in: Economy & Finance
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