Borrowing
in sentence
1116 examples of Borrowing in a sentence
That lesson was reinforced by the experience of countless debt crises in peripheral countries, the most destructive of which hit Latin America exactly 30 years ago, after ecstatic
borrowing
fueled economic booms.
According to that view, investors punish profligate states by demanding higher interest rates to hedge against the likelihood of inflation; so the best way to ensure low
borrowing
costs is to give central banks as much independence from politicians as possible, and then make price stability their primary mandate.
Heavily subsidized, the loans are attractive to
borrowing
governments, especially those whose credit ratings have plummeted.
Although sometimes bridling at liberalization measures, on the whole,
borrowing
governments welcome reforms that increase their revenues, as these improve the prospects of staying in power.
If a country that has been
borrowing
like a drunk suddenly sees its credit dry up, it will tighten its belt – raise taxes, cut spending, or do both – with or without an international lender of last resort.
Borrowing
fueled booming investment spending -- some wasteful, but most catalyzing rapid development.
Finally, low
borrowing
costs for governments do not automatically reduce the cost of capital for the private sector.
Though median households are generally benefiting from lower
borrowing
costs, wealthier households are benefiting much more, thanks in part to savings on mortgage loans, which are highest relative to income for the upper middle class.
Increased
borrowing
by the federal government also means crowding out the private sector.
Lower
borrowing
and capital investment by firms reduces future productivity growth and growth in real incomes.
To be sure, the European Central Bank has done what it takes to narrow the
borrowing
cost differences between European sovereigns.
Middle-income families also insist on buying homes, despite the highest multiple of home price to income among advanced economies and a housing-finance system that imposes high
borrowing
costs.
And enlarging the EFSF to an appropriate size would require massive additional French borrowing, which could well place France itself at the receiving end of a speculative attack.
Eurobonds would cut
borrowing
costs for the European Union’s two large troubled members.
As its official history shows, the Bank restricted research on the implications of excessive
borrowing
during the crisis.
Bringing down sovereign
borrowing
costs would partly, if not entirely, restore governments’ ability to fund bank recapitalization where needed.
The economist Albert O. Hirschman, arguably the most insightful outside observer of Latin American politics in the last half-century, was critical of what he called –
borrowing
from Flaubert – la rage de vouloir conclure, or the obsession of some Latin American leaders to try to bring everything to an immediate conclusion.
Massive speculation and
borrowing
led to excessive debt burdens and ultimately, to default.
They fear, for example, that additional securities purchases by the European Central Bank, aimed at bringing down Spain’s
borrowing
costs, would only lead the Spanish government to relax its reform effort.
Borrowing
from abroad can boost a country’s growth, but also leave it vulnerable to crises.
The second strategy amounts to
borrowing
only as much as one has already saved.
And to guarantee that the facility is large enough to deal with global liquidity events such as that of 2008-2009, the IMF will need access to more resources, whether via market
borrowing
by the Fund or other means.
While emerging economies should aim to emulate these two countries’ educational and health achievements, they should also try to emulate the way Singapore and South Korea paid for all those schools and hospitals: by
borrowing
abroad and running external deficits whenever necessary.
Reducing
borrowing
costs without unleashing inflation was one of the main challenges faced by President Dilma Rousseff when she took office at the beginning of that year.
And, unlike in the late 1980’s and 1990’s, Russia is not indebted to foreign banks or international organizations, though it plans to resume foreign
borrowing
next year.
This, together with reform of the rules covering the capitalization of banks – which incorrectly treat all sovereign debt as risk-free and do not cap banks’ holdings of it – would enable markets, not Germany, to rein in truly excessive
borrowing.
The current risk premium for government
borrowing
in international markets is very similar to that paid by Peru and Brazil, and much less than that demanded of Argentina, Venezuela, and Ecuador.
Borrowing
from the Castro brothers’ playbook in Cuba, the Maduro regime is proceeding under the assumption that the only way to survive is by crushing the will of the people.
The pound initially fell sharply, and then recovered, while long-term government
borrowing
rates have risen by around 30 basis points.
But interest rates on longer-term Italian government bonds (and Italian private-sector
borrowing
costs) are about 250 basis points higher than those on the German equivalents (this is the risk premium).
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