Borrowing
in sentence
1116 examples of Borrowing in a sentence
In a sense, even some “conservatives” – who support more public infrastructure spending, but also want tax cuts and oppose more
borrowing
– de facto support helicopter drops.
Several of the worst-hit – Portugal, Ireland, and Greece – have seen their
borrowing
costs soar to record highs in recent weeks, even after their loss of market access led to bailouts financed by the European Union and the International Monetary Fund.
Spanish
borrowing
costs are also rising.
In a country with a huge amount of liquidity – M2 (a common measure of the money supply) amounts to double China’s GDP – and still-rising
borrowing
costs, this makes little sense.
With local governments and companies struggling to make interest payments, they are forced into a vicious cycle,
borrowing
from the shadow banking sector to meet their obligations, thereby raising the risk-free interest rate further.
Lower
borrowing
costs would also boost China’s capital market, which is critical to provide equity financing to innovative small and medium-size businesses.
For several years until then, home prices in the United States rose dramatically, fueled by massive
borrowing
by homebuyers and banks’ investments in mortgages and mortgage-backed securities.
In Poland’s case, the annual funding gap, which had to be covered by more government borrowing, reached 2.4% of GDP in 2010.
As the international rating agencies have noted, Poland’s economy has expanded by 20% since 2008, and, as a result of healthier public finances, will probably enjoy lower
borrowing
costs, too.
For most of that summer, Mexico, with a projected fiscal deficit of around 11% of GDP, was still
borrowing
on international financial markets, though at an increasing premium.
Corporations have a great deal of liquidity, and do not depend on
borrowing
to invest more in plant and equipment.
It does not take a lot of growth to offset even substantial investment – especially given current low
borrowing
costs.
They reclassify foreign
borrowing
as domestic debt in order to look better in the International Monetary Fund’s statistics.
Whereas wealthy countries hold the most World Bank shares,
borrowing
countries hold a slight majority of the shares (and the presidency) at the regional banks.
But that initiative has not succeeded in reducing the “problem” countries’ longer-term
borrowing
costs to levels compatible with their projected growth rates: there is just too much long-term uncertainty, and growth prospects are simply too discouraging.
Fortunately for the US, the immediate adverse impact on
borrowing
costs would be alleviated, if not nullified, by investors’ lack of readily available alternatives to US government bonds, as well as a Federal Reserve that has been buying large volumes of US Treasuries.
The result was a dramatic reduction in the British state’s
borrowing
costs and the emergence of a well-functioning capital market, which caused private
borrowing
costs to fall as well.
But this solution raised the cost of new borrowing, so France began to consider the British model.
The decision, taken after more modest attempts at monetary easing failed to increase bank lending and private-sector borrowing, reflects a renewed focus on boosting economic growth.
The one argument that seems – at least superficially – to put the public interest first is that an involuntary restructuring might lead to financial contagion, with large eurozone economies like Italy, Spain, and even France facing a sharp, and perhaps prohibitive, rise in
borrowing
costs.
Easing can boost growth by lifting asset prices (equities and housing), reducing private and public
borrowing
costs, and limiting the risk of a fall in actual and expected inflation.
In Ireland, the three largest banks went crazy for commercial real estate – financed by large-scale
borrowing
from other eurozone countries (including Germany).
As in recent years, he consumed at or above his income level, and the United States as a whole spent well beyond its means,
borrowing
from the rest of the world at a feverish pace in 2005 – more than $2 billion a day.
Developing countries, however, could potentially accelerate productivity growth, and thus GDP growth, by
borrowing
technology from advanced countries – that is, tapping the latecomers’ advantage, as China has done.
At the same time, rigid rules limiting deficit spending by regional governments could place the UK in the same fiscal straitjacket as the eurozone, where member states are prevented from
borrowing
in recessions.
This facilitated massive capital inflows and unsustainable
borrowing
in the peripheral countries – most notably Greece, but also Portugal, Spain, and Italy – shrouding, and thereby accelerating, their increasing loss of competitiveness.
Central and local government
borrowing
in China has soared: bank and shadow-bank credit has grown rapidly: and the People’s Bank of China (PBOC) has increasingly issued direct loans to state-owned banks in a maneuver closely resembling monetary finance of government spending.
The more the government borrows to pay for its spending today, the more the public saves to pay future taxes, canceling out any stimulatory effect of the extra
borrowing.
More important, when there are idle resources (for example, when unemployment is much higher than normal), the spending that results from the government’s
borrowing
brings these resources into use.
The increased government revenue that this generates (plus the decreased spending on the unemployed) pays for the extra
borrowing
without having to raise taxes.
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