Borrowing
in sentence
1116 examples of Borrowing in a sentence
Previously, emphasis had been placed on boosting aggregate demand – primarily by lowering the cost of borrowing, but also by spurring wealth effects from appreciating financial assets.
In the era of conventional monetary policy, transmission channels were largely confined to
borrowing
costs and their associated impacts on credit-sensitive sectors of real economies, such as homebuilding, motor vehicles, and business capital spending.
Is it sustained economic decline, high and long-term unemployment, poverty, rampant inflation, a precipitous fall in the exchange rate, fiscal deficits, high
borrowing
costs, and political dysfunction?
Rising international interest rates have usually been bad news for countries where the government and/or the private sector rely on external
borrowing.
But, because Greek euro bonds were regarded as a close substitute for other countries’ euro bonds, the interest rate on Greek bonds did not rise as Greece increased its
borrowing
– until the market began to fear a possible default.
As a result, they are finding it hard to “pay for” the tax cuts with any reduction in tax expenditures (incentives for various activities such as corporate borrowing, mortgage financing, or retirement saving).
In the last few years, when world prices for oil and gas dropped and could no longer bring the desired funds, the state resorted first to high inflation and then to excessive internal and external
borrowing.
Today the world wrestles with the consequences of America’s addiction to
borrowing
and with the greed and stupidity of many global banks.
In economies with a recent record of fiscal restraint, including Australia, Canada, and New Zealand, the private sector has been
borrowing
hand over fist.
People like Summers worry about deficits because they doubt that the money the government is
borrowing
is being spent in ways that will push the long-term growth of GDP above that of the debt.
A variant, seen in Europe, is the use of government
borrowing
to fill a demand and employment gap created by deficient private domestic and external demand.
Tunisia’s external state
borrowing
has not crowded out the private sector; nonetheless, private investment has fallen to 18% of GDP.
In short, the Argentine model of debt reduction in the 2000’s has collapsed as completely as its
borrowing
model in the 1990’s did.
The analogue in the world of debt negotiation is that a new start that allows
borrowing
to begin all over again is also impossible.
America, the world's richest country, evidently can't live within its means,
borrowing
more than a billion dollars a day.
If a country saves less than it invests, it must borrow the difference from abroad, and foreign
borrowing
and trade deficits are two sides of the same coin.
They know that their supervisor has powerful tools at its disposal – for example, it can lower
borrowing
costs, thereby protecting banks (at least for a while) – and a strong interest in protecting its reputation.
The standard response to Minsky’s concern – that the spenders can’t afford it and the savers aren’t spending – is that monetary policy should focus on ensuring price stability, while macroprudential policy aims to safeguard financial stability by limiting
borrowing
by highly indebted agents.
That drives up affected governments’
borrowing
costs further, fueling a downward spiral.
If that high level of government
borrowing
occurs, it will absorb all of the available household savings even at the current elevated level.
Markets noticed that the euro seemed caught between a rock (the EFSF’s limited
borrowing
capacity) and a hard place (the European Central Bank’s great reluctance to engage in large-scale purchases of financially troubled governments’ bonds).
Commodity-price booms are usually associated with rising incomes, stronger fiscal positions, appreciating currencies, declining
borrowing
costs, and capital inflows.
Likewise, the excess
borrowing
by companies in Spain, Portugal, and Ireland was largely offset by relatively sustainable
borrowing
in the eurozone’s three economic heavyweights – Germany, France, and Italy – where the need to deleverage is thus limited.
Reducing
borrowing
costs further would diminish the incentive for governments to put their fiscal houses in order.
The long and costly process that Argentina is now escaping should convince current and future governments of the need to be wary of the perils of external
borrowing.
And yet this is not even the first time that a bout of external
borrowing
has ended badly for the country.
Apart from the central government, about half of Argentina’s 24 provinces (counting Buenos Aires) are actively seeking to borrow abroad; some estimates suggest that imminent provincial
borrowing
could amount to another $5 billion of external debt.
But the real wake-up call has been the belated effort to sort out local government
borrowing
and misspending.
Assume that the Japanese government financed its deficit partly by printing money rather than
borrowing.
Making matters worse, such funding accumulated interest with every transfer, adding to the costs of shadow-bank
borrowing.
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