internal balance

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Internal Balance

A situation in which the consumption in an economy roughly equals production. That is, external balance occurs when what is spent and what is produced in the economy are never too far from being even. Internal balance may be characterized by both full employment and low inflation, though not all economists believe this is possible. Maintaining internal balance is considered sustainable. See also: External balance.
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internal balance

a situation where the economy is operating at FULL EMPLOYMENT and the general level of prices is constant (PRICE STABILITY). The achievement of full employment and price stability are two important macroeconomic objectives of the government. In practice, it is difficult to secure both objectives simultaneously (see PHILLIPS CURVE). Compare EXTERNAL BALANCE. See also DEMAND MANAGEMENT, INTERNAL-EXTERNAL BALANCE MODEL, MACROECONOMIC POLICY.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Suppose that the actual exchange rate happens to correspond initially to its FEER value and that internal balance is at the optimal level - in other words, that there is no problem of the starting point or transition period.
On the eve of the parliamentary elections, Gemayel called for "the restoration of internal balance that guarantees constructive dialogue and equality among all components."
The ICG also points to regional factors that are critical in shaping the internal balance of power in Kurdish politics.
This has helped Turkey not only to maintain its own internal balance, but also to win markets and keep friends without the heavy baggage and risks of divisive geopolitics.
In other words, the Council's foreign success has found no real translation that would reverse the internal balance of power.
The latest za'im to throw down the gauntlet is Walid Junblatt, the Druze leader who joined the March 14 coalition in 2005 and whose surprising decision to leave the majority will have serious consequences not only for the formation of the next Cabinet but also on the country's internal balance of power.
In the later publications there will be little internal balance. (ANI)
Some orchestras might have brought more gloss to the string writing, and perhaps tempered the brass with greater control and attention to internal balance, but the CBSYO held all the aces when it came to energy and freshness, welding the disparate elements (this is after all a symphony of shifting emotions rather than sustained argument) into a cogently shaped, powerfully exciting display of orchestral brilliance.
(See our questionnaire below.) We each have all three doshas, one dominant, and if our internal balance of these becomes destabilised, we get ill.
In order to estimate a FEER, one needs three things: an interpretation of what is meant by internal balance, an interpretation of what is meant by external balance, and a macroeconometric model which can be solved to yield the exchange rate (trajectory) consistent with the medium-run achievement, and subsequent maintenance, of simultaneous internal and external balance.
"Our country must be stable" and adopt the policy of dissociation after the 'disturbing' national crisis caused by the resignation of Prime Minister, Saad Hariri," he said, expressing support for the efforts of the latter to establish a certain internal balance. The mufti said the Lebanese rallied around their prime minister in favor of State recovery.
When the government decided to suppress the Gezi Park protests with brutal police force, the internal balance the government had maintained all but disappeared.

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