Answered By: Peter Z McKay Last Updated: Oct 29, 2014 Views: 18
- Fiscal Tightening in 2013 and its Economic Consequences -- Infographic
Congressional Budget Office (CBO)
August 22, 2012
Under current law, a sharp reduction in the federal budget deficit between 2012 and 2013 will cause the economy to contract, the Congressional Budget Office projects, but will also put federal debt on a path more likely to be sustainable over time. To illustrate the effects of fiscal tightening, CBO compared its projections under current law (the "baseline" projections) with projections under an alternative set of policies — two scenarios in a broad spectrum of choices.