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Borrowing in sentence

1116 examples of Borrowing in a sentence

The global economic and financial crisis has precipitated an immense expansion of central government spending, borrowing (and hence future taxing), lending, regulation, and mandates, some in “aid” to sub-national governments (about $200 billion in the US stimulus bill).
But if the Fed’s ongoing withdrawal of stimulus has frayed African nerves, it has also spurred recognition that there are smarter ways to finance development than borrowing in dollars.
In Praise of Debt CeilingsMUNICH – The wrangling about raising the US government’s borrowing limit – now thankfully over, at least for a few months – underscores the hazards posed by excessive state indebtedness.
In the end, the solution to this “redistribution battle” tends more often than not to be found in more government borrowing.
For today’s democracies, the fact that those who will eventually have to pay the taxes to service the resulting debt cannot yet vote makes borrowing the most expedient way out of a messy political battle.
The lure of borrowing becomes irresistible if it can be assumed that the burden might be shifted to population groups other than those benefiting today from low taxation or higher public spending.
That is, for example, the case with childless people: they benefit from public borrowing and manage to shift to other families’ descendants the part of the debt service that will fall due when they are no longer around.
Only insofar as parents, taking into account the interests of their children and grandchildren, participate in the political process can the borrowing addiction be kept in check.
As a result, eurozone countries’ appetite for borrowing remains unbridled, while at the same time the sanction mechanisms included in the European Union’s “fiscal compact” are quietly set aside.
Instead of shouldering the burden of reducing expenditures or raising taxes, countries opt for borrowing, because they know that they can unload part of the burden onto others.
After Alexander Hamilton, the country’s first treasury secretary, mutualized the states’ Revolutionary War debts in 1791 by turning them into federal debt, the states went on a borrowing binge to finance infrastructure projects.
The economic boom that borrowing ushered in turned out to be nothing more than a credit bubble that eventually burst (with the financial panic of 1837).
So too the idea that deficits are okay when they reflect investment, or that large borrowing is no problem if it is private.
The US government is now trying to repay old debt by borrowing more; in 2010, average annual debt creation (including debt refinance) moved above $4 trillion, or almost one-quarter of GDP, compared to the pre-crisis average of 8.7% of GDP.
While the yield on Japan’s ten-year bond has dropped to an all-time low in the last nine years, the biggest risk, as in the US, is a large increase in borrowing costs as investors demand higher risk premia.
The government used the oil boom that started in 2004 to disempower society and enhance state control over production and the market, while borrowing massively in international markets.
By 2013, the government’s excessive borrowing had caused it to lose access to international capital markets, triggering the start of the recession.
This system could persist only through sustained public borrowing.
We noticed that our monetary policy was no longer having the effect on private borrowing costs to which we were accustomed.
It was obvious that the lending channels in the banking system had become dysfunctional; excessively restrictive borrowing conditions were suppressing demand.
In response, the ECB did precisely what any central bank would have done: we acted to restore the relationship between our monetary policy and the cost of borrowing, aiming to bring down the average rate that households and firms have to pay.
The effectiveness of interventions in the sovereign-bond market – that is, their ability to lower the borrowing costs of households and firms further – will also rest on the state of the banking sector.
Many developing countries now have flexible exchange rates, and, by shifting to domestic sources of borrowing, they have reduced the currency mismatches associated with their liabilities.
Second, empowered by exceptionally generous global financing conditions, a growing number of emerging-market corporates have resorted to external dollar borrowing, materially increasing their financial vulnerability to higher interest rates and adverse currency moves.
But an unsustainable debt burden may also result from borrowing to spend too much, failure to collect sufficient taxes, and other policies that undermine the economy’s growth potential.
In the US, the commitment to fiscal rectitude followed President Clinton's early realization that balanced budgets would stabilize financial markets, reduce borrowing costs, and thus generate higher growth.
So long as a national government is not running more than a modest deficit, a current-account deficit reflects the private sector’s borrowing from abroad (or the sale of previously accumulated foreign assets).
They were concerned that the banks, through their wealth-management arms, were borrowing excessively on the overnight market to finance high-risk investments.
The average real long-term government interest rate in 1891-1979 – a period ending just before Volcker oversaw soaring growth in borrowing costs – was a mere 1.25%, which is very close to the real long-term interest rate today.
This view, supported by a more skeptical reading of Argentina’s borrowing habits and history of stop-and-go dynamics, deserves special attention.
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