Borrowing
in sentence
1116 examples of Borrowing in a sentence
This, everybody agrees, needs to be reduced sharply, since Brazil is having a very difficult time financing that deficit, either through domestic or foreign
borrowing.
First, allow their exchange rates to be flexible, and keep a tight limit on short-term
borrowing
from abroad.
This should entail the application of powerful macro-prudential tools: higher and countercyclical capital requirements, quantitative reserve requirements, and direct controls on
borrowing
through loan-to-value or loan-to-income limits.
A reduction in
borrowing
costs constituted a powerful motive in the 1990’s for southern European governments to join the monetary union.
This is an economic fact of fundamental significance, for the real long-term interest rate is a direct measure of the cost of
borrowing
to conduct business, launch new enterprises, or expand existing ones – and its levels now fly in the face of all the talk about the need to slash government deficits.
Nominal interest rates – quoted in terms of dollars, euros, renminbi, etc. – are difficult to interpret, since the real cost of
borrowing
at these rates depends on the future course of inflation, which is always unknown.
But, if there is no inflation over the next ten years, I will pay a hefty real price for
borrowing.
Notably, the issuer, that is the borrower, can rationally plan such
borrowing
to make real investments.
Instead, low long-term real interest rates appear to reflect a general failure by governments over the years to use the
borrowing
opportunities that the inflation-indexed markets present to them.
It is strange that so many governments are now emphasizing fiscal consolidation, when they should be increasing their
borrowing
to take advantage of rock-bottom real interest rates.
Part of those neighbors’ problem was that domestic
borrowing
costs looked so high that many small borrowers, including many house buyers, turned to low-interest Swiss-franc loans and were then hit by the franc’s massive appreciation.
Depreciation will inflate China's debt burden and increase the costs for additional
borrowing
that the government may undertake to finance its infrastructure investment projects.
Most worrisome is America’s huge dependence on foreign borrowing, particularly from China – an imbalance that likely planted the seeds of the current crisis.
In this global economy it is simply too late to believe that big government, printing money and
borrowing
from one's children are the ways to get ahead.
Debtor countries pay substantial risk premiums to finance their debt, which is reflected in their high economy-wide
borrowing
costs.
Back in the 1980s, conservative hero Ronald Reagan was willing to tolerate enormous deficits to fund his ambitious tax-cutting plans, and he did so in an era when
borrowing
wasn’t cheap.
What matters is not only the level of debt, but also how it is managed – a question I examined in a recent commentary focusing on the right mix of long-term and short-term government
borrowing.
But if interest rates shoot up in the Trump era (as well they could), the US government will wish that it had opted for less short-term
borrowing
and more long-term
borrowing.
If a Trump presidency does entail massive
borrowing
– along with faster growth and higher inflation – a sharp rise in global interest rates could easily follow, putting massive pressure on weak points around the world (for example, Italian public borrowing) and on corporate
borrowing
in emerging markets.
The only effective response is counter-cyclical capital-account management: discouraging foreign
borrowing
during economic upswings and preventing capital flight during downswings.
Here, the key concern is that the current recovery is too dependent on low interest rates: if
borrowing
costs rise, the periphery’s debtor countries would suffer.
The government has been
borrowing
abroad to cover the shortfall (the overall fiscal deficit was nearly 6% of GDP in 2016).
Because Macri reached a settlement with Argentina’s holdout creditors from the sovereign default in 2001, the private sector also has been able to resume foreign
borrowing.
Low interest rates on deposits and low lending rates for firms and developers mean that the household sector’s massive savings receive negative rates of return, while the real cost of
borrowing
for SOEs is also negative.
Instead, the group’s report underscores the true risk for Europe: a return to the soft budget constraints – both private and public – and excessive
borrowing
that overheated its southern and western periphery and gave rise to destabilizing trade imbalances.
This level of protection would induce them to invest their money only if the
borrowing
country offered a reasonable, limited interest-rate premium over safe assets.
Emerging markets have resorted to a variety of instruments to limit private-sector
borrowing
abroad: taxes, unremunerated reserve requirements, quantitative restrictions, and verbal persuasion.
Central banks that buy sovereign debt issued by fiscal authorities offset market-imposed discipline on
borrowing
costs, effectively subsidizing public-sector profligacy.
Businesses that ought to be expanding and hiring cannot, because the depressed general level of financial asset prices prevents them from
borrowing
money or selling bonds on profitable terms.
Compared to the private sector, local governments and state-owned enterprises tend to have access to significantly cheaper funding, with the gap between official interest rates and shadow-banking
borrowing
costs reaching as much as ten percentage points.
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