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Borrowing in sentence

1116 examples of Borrowing in a sentence

Because financial markets failed to recognize distinctions in risk among eurozone countries, interest rates on sovereign bonds did not reflect excessive borrowing.
That analysis should also recognize the distinction between real (inflation-adjusted) deficits and the nominal deficit increase that would result if higher inflation caused sovereign borrowing costs to rise.
Brad Delong and Larry Summers have argued that in a repressed economy, short-term increases in borrowing can pay for themselves, even if the expenditures do not directly increase long-run potential.
Such borrowing calls for collateral – in this case, the land on which construction will take place.
Some of the debt does not even appear in the official statistics of borrowing countries, because it was often taken on not by domestically-based firms, but by their offshore subsidiaries.
When a country with higher inflation and structural rigidities joins a monetary union, it initially finds itself awash with liquidity: exchange-rate risk disappears, real interest rates turn negative, and borrowing becomes an irresistible bargain.
Leaders would be acting irresponsibly if they failed to employ the EU’s borrowing capacity when its very existence is at stake.
France is “southern” in its current-account deficit, but “northern” in its borrowing costs (slightly above Germany’s), owing partly to inflows of capital fleeing the south, as well as to modest but positive economic growth.
Meanwhile, once recovery has set in, the huge borrowing demands of the US and Europe will almost certainly drive up real interest rates globally, posing new problems for the world's emerging markets.
If desirable real estate is in scarce supply, credit creation and allocation can at times be driven not by rational analysis of alternative investment projects, but by self-reinforcing cycles in which more credit drives asset prices higher, which then sustains expectations of further rises, leading to more borrowing demand and credit supply.
The authorities could have used public expenditure to finance this construction boom, borrowing or printing the money required.
The Republicans’ hegemony will enable easy agreement on tax cuts financed mainly by higher public borrowing, rather than by facing down special-interest lobbies’ resistance to the elimination of exemptions and loopholes.
What was distinctive this time was that the new borrowing was concentrated in housing.
Borrowing the credibility of an established monetary authority – especially one that issues a global reserve currency – would be tactically advantageous for a post-independence Scotland; but the new country would be exposed to the risk of an inflation shock and sterling crisis stemming from the Bank of England’s expansionary monetary policy.
To start cutting now risks derailing the recovery – which is already bringing down borrowing more rapidly than expected.
An ECB policy that artificially reduces their sovereign borrowing costs would make these steps even more politically difficult.
This debut Sub-Saharan issue, which was four times oversubscribed, sparked a sovereign borrowing spree in the region.
It is no secret that sovereign bonds carry significantly higher borrowing costs than concessional debt does.
The risks will undoubtedly grow if sub-national authorities and private-sector entities gain similar access to the international capital markets, which could result in excessive borrowing.
Understanding the risks of excessive private-sector borrowing, the inadequacy of private lenders’ credit assessments, and the conflicts of interest that are endemic in banks, Sub-Saharan countries should impose constraints on such borrowing, especially when there are significant exchange-rate and maturity mismatches.
But borrowing money from international financial markets is a strategy with enormous downside risks, and only limited upside potential – except for the banks, which take their fees up front.
Strong economic performance reflects strong domestic demand in the US, owing to low borrowing costs and rising asset prices.
Thus, the Fed’s withdrawal from QE would be accompanied by a capital-flow reversal, increasing borrowing costs and hampering GDP growth.
It took the financial crisis to put the brakes on US borrowing train – America’s current-account deficit has now shrunk to just 3% of its annual income, compared to nearly 7% a few years ago.
With the US government currently tapping financial markets for a whopping 12% of national income (roughly $1.5 trillion), foreign borrowing would be off the scale but for a sudden surge in US consumer and corporate savings.
Of course, the US government claims to want to rein in borrowing.
If economic growth is affected, eventually other tax revenues will fall, and if government bonds are covered, borrowing costs will rise.
But Germany and other northern European countries are reticent to underwrite what they view as distressed countries’ irresponsible borrowing.
Borrowing costs for the Spanish and Italian governments have similarly fallen dramatically.
With retail investors borrowing large amounts to finance share purchases, participation in the stock market surged, effectively turning a sound bull market into a “mad cow.”
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