Borrow
in sentence
809 examples of Borrow in a sentence
In the run-up to the Asian financial crisis of the 1990s, many emerging economies kept their currencies rigidly pegged to the dollar, and governments tended to
borrow
heavily in dollars, despite generating most of their revenues in the domestic currency (what economists labeled “original sin”).
Likewise, transfers to state and local governments, which have limited constitutional scope to borrow, would help slow down wrenching layoffs of teachers, firefighters, and police.
The same applies to corporate firms: some have bad luck and their business plans fail, while others
borrow
too much to pay their mediocre managers excessively.
In the acute stage of the crisis, there is so much nervousness and anxiety that it is almost impossible for anyone to
borrow.
If I
borrow
euros at 4% for ten years, I know that I will have to pay back 4% of the principal owed as interest in euros every year, but I don’t know what this amounts to.
If inflation is also 4% per year, I can
borrow
for free – and for less than nothing if annual inflation turns out to be higher.
This implies an arbitrage opportunity for governments:
borrow
massively at these low (or even negative) real interest rates, and invest the proceeds in positive-returning projects, such as infrastructure or education.
The most important instrument driving this surge was margin trading, which enabled investors to
borrow
heavily to purchase shares.
One solution would be to establish a fiscal capacity at the eurozone level, or, in plain words, a eurozone budget, including the ability to
borrow.
The fact is that whenever one party has firm control of government, it has a powerful incentive to
borrow
to finance its priorities, knowing that it won’t necessarily be the one to foot the bill.
What, then, prevents deficits from spiraling upward as parties alternate power and
borrow
to help their supporters?
In other words, the public debt must be so large, or growing so fast, that the government could soon lose the ability to
borrow
further.
Even in the depths of the euro crisis, they could still
borrow
abundantly at what remained, by historical standards, low interest rates.
The Weimar Republic had incurred huge deficits, owing in part to meet reparations payments mandated by the Treaty of Versailles, but it was unable to borrow, so the central bank printed money.
As a result, Egypt’s financing must continue to grow: the country now needs to
borrow
about $14-15 billion to plug its estimated financing gap of $24 billion.
This creates a powerful incentive to overinvest and implies enormous redistribution from households to SOEs, most of which would be losing money if they had to
borrow
at market-equilibrium interest rates.
Banks will not lend if the economy is in the doldrums, and American households will be particularly reluctant to
borrow
– at least in the profligate ways they borrowed prior to the crisis.
But the creation of the euro caused a sharp fall in interest rates in the peripheral countries, leading to debt-financed housing bubbles and encouraging their governments to
borrow
to finance increased government spending.
When banks
borrow
on the wholesale money market to finance their investments, they
borrow
in dollars.
The problem is not that emerging economies have no desire to borrow; they desperately need funds for infrastructure and other investments.
A 20-year loan from the World Bank has an interest rate of about 4%, and the poorest countries can
borrow
for less than 1% (“International Development Association loans”).
To
borrow
from Aesop’s “The Braggart”: Hic Rhodus, hic salta!
To allow national fiscal stabilizers to work, governments must be able to
borrow
at an affordable cost in times of economic stress.
As households and investors
borrow
cheaply to invest in rapidly appreciating housing and fixed assets, bubbles form and then burst, spurring crises.
But state incursions into the capital markets are now crowding out the private sector's ability to
borrow.
Indeed, one of the most fascinating proposals to this effect came at the beginning of World War I, when the Russian Empire found that its limited capacity to
borrow
on international capital markets and its low foreign-currency reserves left it unable to create an effective military force.
Following a request by a member state, the Commission would be entitled to
borrow
on capital markets under the implicit EU budget guarantee, with the maximum amount determined by the size of the country’s unused (pre-allocated) Structural and Cohesion Funds.
If you could package the loans to SMEs and refinance them at the ECB on equal terms, that would mean that enterprises south of the Alps would be able to
borrow
on more or less equal terms with enterprises north of the Alps.
So products were developed that allowed investors to
borrow
easily in several currencies at once and invest in a portfolio of high-interest-rate currencies.
The same study argues that in the more financially repressed peripheral countries, the main expectation associated with the liberalization process was that those who had previously lacked access to credit – say, because of low incomes or low savings – could now borrow, in order to finance more consumption.
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