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Borrowing in sentence

1116 examples of Borrowing in a sentence

Governments must continue to pay benefits to today’s pensioners, and they can do so only by borrowing money to replace the revenues that tomorrow’s pensioners are now diverting to personal insurance schemes.
As a result, banks have even stronger incentives to resume heavy borrowing (as Admati argues), and, as rising asset prices lift the economy in the recovery phase, it becomes possible for them to borrow even more (as Bernanke knows).
Certainly such large-scale borrowing and lending had played a key role in the late-19th century.
By 2013, Venezuela’s extravagant borrowing led international capital markets to shut it out, leading the authorities to print money.
Banks are profitable on an ongoing basis, borrowing at very low interest rates, often from the central bank, and collecting higher interest rates on their loans.
While this borrowing binge might end smoothly, as US Federal Reserve Chairman Ben Bernanke has speculated, most world financial leaders are rightly worried about a more precipitous realignment that would likely set off a massive dollar depreciation and possibly much worse.
If today’s epic US borrowing does end in tears, and if world leaders fail to help the IMF get the job done, history will not treat them kindly.
This orthodoxy arises from the idea that borrowing is simply “deferred taxation.”
If the private sector believes that taxes will have to rise to pay for government borrowing, according to this view, people will increase their savings to pay the higher taxes, thus destroying any stimulative effect.
First, despite the birth of the euro and talk of the Chinese renminbi’s ascendancy, the dollar remains the currency of choice for borrowing and lending around the world.
Third, while ECB policies keep borrowing costs lower, private and public debt in the periphery countries, as a share of GDP, is high and still rising, because the denominator of the debt ratio – nominal GDP – is barely increasing.
In a push to reduce the cost of borrowing, the Fed purchased long-term assets in the market, injecting liquidity into the financial system.
This is because “[h]ouseholds also have made some progress in repairing their balance sheets – saving more, borrowing less, and reducing their burdens of interest payments and debt.”
Rising house prices gave people the illusion that increasing wealth backed their borrowing.
The advent of the euro was a seeming boon, because it reduced borrowing costs and allowed countries to create jobs through debt-financed spending.
The important exception to this pattern is Germany, which was accustomed to low borrowing costs even before it entered the eurozone.
In both cases, the credit system got out of control, with too much lending to the private sector in 1980’s Japan and excessive government borrowing during the 2000’s in the eurozone.
Moreover, such fluctuations are amplified by borrowing in good years, so countries should resist foreign lenders who try to persuade them of the virtues of such capital flows.
When a country gives up its monetary sovereignty, its banks are effectively borrowing in a foreign currency, making them exceptionally vulnerable to liquidity shocks, like that which sparked turmoil in Europe’s banking system in 2010-2011.
As borrowing costs rose in all emerging markets - regardless of their fundamental economic health - so did the probability of recurrent crises, forming a vicious circle.
And it encouraged foreign borrowing as needed to finance the requisite level of capital formation.
In relying on foreign borrowing, their growth model neglected the risks.
Because China’s government relaxed restrictions on offshore borrowing faster than was prudent, Chinese enterprises with links to the government have high levels of foreign debt.
Trump’s tax and spending plans will sharply reverse the budget consolidation enforced by Congress on Barack Obama’s administration, and household borrowing will expand dramatically if Trump fulfills his promise to reverse the bank regulations imposed after the 2008 financial crisis.
A confluence of dollar strength and excessive foreign borrowing caused the debt crises in Latin America and Asia in the 1980s and 1990s.
They argue that, given record-low borrowing costs of about 1%, increased capital spending by governments would effectively amount to the proverbial “free lunch,” yielding sufficiently high tax revenues that the debt/GDP ratio would not rise.
Given the current combination of a high fiscal multiplier – raised further by widespread overcapacity – and exceptionally low borrowing costs, all of these benefits could be gained without any net fiscal cost.
At the same time, Bush supported expenditure increases for popular items like education and prescription drug benefits, but paid for these services by borrowing the money rather than ensuring sufficient tax revenues.
Moreover, beyond the housing market, excessive borrowing by financial institutions and some segments of the corporate and public sectors occurred in many economies.
This was followed by an extended version of the assisted-growth model in the advanced countries, largely revolving around unconventional monetary policy; in the United States, this implied several rounds of quantitative easing, which is simply the government borrowing from itself – a form of price control.
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