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Step 7. In the final step, we complete calibration of the GI model to CBO’s baseline projections. We begin by setting the levels of publicly-held Federal debt and net Federal interest payments in the CBO-like forecast.53

We only indirectly impose CBO’s projection of the stock of publicly-held Federal debt. A net change in publicly-held Federal debt is calculated using CBO’s published projections of unified Federal surpluses along with CBO’s published projections of the Federal Government’s other means of financing publicly-held debt. That net change is used to make quarterly adjustments to the GI model’s variable for publicly-held Federal debt that are consistent with CBO’s other published budgetary projections. After setting the stock of Federal debt, we impose a target for net Federal interest payments. That target is calculated using CBO’s projections of gross Federal interest payments and Federal income on assets.54

After setting net Federal interest payments, we make our final adjustments to the CBO-like forecast. These final adjustments include setting the level of the consumer price index (CPI) to be consistent with CBO’s projections of CPI inflation. They also include finetuning average effective Federal tax rates on personal and corporate incomes and for Federal contributions to social insurance so that the final CBO-like forecast is consistent with CBO’s published projec­tions of Federal tax receipts. Finally, they include slight adjustments to the statistical discrepancy to ensure that the GI model calibrated to the final CBO-like forecast reproduces CBO’s published projection of corporate profits.