The idea behind the CABB is that governments should aim to run a balanced budget over the course of the business cycle: surpluses in expansions would offset the deficits incurred during recessions. (macleans.ca)
That is, the intent is that over the course of the business cycle, the bulk of the distribution of year - ended inflation outcomes should lie between 2 and 3 per cent, not that the annualised average inflation rate from the start of the business cycle to the end should necessarily lie between 2 and 3. (rba.gov.au)
This approach allows a role for monetary policy in dampening the fluctuations in output over the course of the business cycle. (rba.gov.au)