Borrowing in sentence

1116 examples of Borrowing in a sentence

Even more staggeringly, US borrowing now soaks up more than two-thirds of the combined excess savings of all the surplus countries in the world, including China, Japan, Germany, and the OPEC states.

In the 1990s, however, emerging markets, especially in Asia, increased their external borrowing considerably, creating the currency and balance-sheet mismatches that later triggered the crisis.

Shorting a stock is difficult and risky: it is difficult because borrowing stocks is hard to do, and it is risky because shorting has limited upside but infinite downside.

Until now, Americans have been raking in profits by borrowing cheaply from pliant foreigners and investing the money in high-yield foreign equities, land, and bonds.

Moreover, a common monetary policy combined with independent fiscal policy is bound to fail: the former increases unemployment in weaker economies because the interest rate reflects average eurozone indicators (with large weights on Germany and France), but keeps borrowing costs low enough that weak economies’ governments can finance fiscal profligacy.

Turkey fuels its growth by tapping international capital markets to finance its annual external borrowing requirement of around $250 billion.

As long as investors believe that Italy and Spain will eventually be rescued by the OMT, these countries’ borrowing costs will be low, and the rescue will not be needed.

Finally, an early request for OMT intervention would not only reduce the Italian and Spanish governments’ borrowing costs (and thus their fiscal deficits), but would also lower the cost of capital for local firms, which currently find it difficult to borrow and invest.

In countries with higher price growth than in Germany, but with the same borrowing costs, this cannot produce anything but overheating, higher inflation, and even lower real interest rates.

A well-capitalized World Bank leverages all its shareholders’ investments by pooling them and then raising five times the capital by borrowing in financial markets.

Until 2007, many people financed consumer purchases, whose prices were more or less stable, by borrowing against their houses, which were rapidly rising in value.

Last year’s congressional showdown over the federal debt ceiling may have cost the US its AAA sovereign rating with Standard & Poor’s, but the federal government’s borrowing costs are actually lower now than they were then.

Interest-rate cuts can boost borrowing – and thus spending on investment and consumption.

First, the two initiatives resulted in markedly improved borrowing conditions for southern European governments (at least until Federal Reserve Board Chairman Ben Bernanke created new shockwaves with his indication in mid-June that the US would wind down more than three years of so-called quantitative easing).

With a modest fiscal deficit, record-low borrowing costs, and a huge current-account surplus, Germany has the financial firepower to unleash a significant stimulus.

This process started in the US after the housing bust, then spread to Europe, and is now ongoing in emerging markets that spent the last decade on a borrowing binge.

In the meantime, China’s government should pursue a different set of consumption-boosting policies, beginning with an easing of household borrowing constraints.

Clearly, Chinese households have plenty of room for more borrowing.

By conflating QE-induced wealth effects with the effects on borrowing costs that arise through conventional channels, Bernanke conveniently sweeps aside most of the risks described above – especially those pertaining to asset bubbles and excess leverage.

Ireland’s banks financed their rapid growth by borrowing from other European banks, so the health of Europe’s financial system has become entwined with the survival of these insolvent banks.

But banks facing possible liquidity problems – which the Fed wants to be able to borrow at 5.25% – are borrowing from the Fed itself at 5.75%, as are a few big banks that want more liquidity but don’t believe they could get it without disrupting the market.

On monetary policy, the European Central Bank’s forward guidance – the commitment to keep interest rates at a low level for a long time – is too little too late and has not prevented a rise in short- and long-term borrowing costs, which could stifle the eurozone’s already-anemic economic recovery.

Saving-short economies simply cannot go on deficit-spending binges without borrowing surplus saving from abroad.

And hedge funds, unlike banks, can leverage their bets, borrowing to take on assets many times the size of their capital base.

But, given high debt burdens and rising borrowing costs in many countries, is there a viable alternative to rapid fiscal consolidation?

In fact, the rising cost of intermediation – largely a result of the distortions in China’s financial system – is among the most important factors driving the rise in borrowing costs for Chinese businesses.

After all, a large share of the borrowing by households and businesses in the periphery is indexed to short-term rates, which are set by the ECB, not the markets, and therefore have remained low.

Earlier, in 2009, the BRSA adopted another important measure that barred households from borrowing in foreign currency, thus sparing them the effects of exchange-rate volatility.

Turkey has also amended its tax laws to penalize excessive external borrowing by non-financial firms and to introduce significant incentives aimed at encouraging long-term household savings.

With the outbreak of the global crisis, major advanced economies employed unconventional monetary policies, leading to massive capital flows to emerging-market economies, which lowered borrowing costs and increased access to credit.

Related words