Debts
in sentence
1153 examples of Debts in a sentence
In Europe, the results were less dramatic because
debts
weren’t denominated in dollars.
A painful deleveraging process implies that private and public spending need to fall, and that savings must rise, to reduce high deficits and
debts.
Meanwhile, fiscal policy – especially productive public investment that boosts both the demand and supply sides – remains hostage to high
debts
and misguided austerity, even in countries with the financial capacity to undertake a slower consolidation.
They have just experienced a significant jump in their national debts, and they still need to stimulate their domestic economies.
A government determined to honor its
debts
at any cost often ends up imposing a tax burden that is disproportionate to the level of services that it supplies; at a certain point, this discrepancy becomes socially and politically unsustainable.
The second question is how serious a problem it is not to repay one’s
debts.
But if Greece is not solvent, either the EU must assume its
debts
or the risk will hang over it like a sword of Damocles.
The good collateral meant that banks could hold these
debts
at par on their balance sheets.
Rather than continuing to pile new
debts
onto bad debts, the EU stabilization fund could be used to collateralize such new par bonds.
Moreover, periphery governments are largely shielded from the increase in the risk premium on long-term bonds, because their central banks continue to purchase their outstanding
debts.
A significant strengthening of the dollar would indeed cause serious problems for emerging economies where businesses and governments have taken on large dollar-denominated
debts
and currency devaluation threatens to spin out of control.
And, when some of the IMF’s largest debtors (Brazil and Argentina) began to prepay their
debts
a few years ago with no new borrowers in sight, it looked like the final nail in the coffin had been struck.
Policymakers will have to worry about a strange beast called “stag-deflation” (a combination of economic stagnation/recession and deflation); about liquidity traps (when official interest rates become so close to zero that traditional monetary policy loses effectiveness); and about debt deflation (the rise in the real value of nominal debts, increasing the risk of bankruptcy for distressed households, firms, financial institutions, and governments).
But as a result of these policies, every country in the group is starting 2012 with larger international reserves and foreign
debts
with longer maturities than they would have had otherwise.
If talented young Greeks must fund perpetual surpluses to repay past debts, they can literally walk away from Greece’s
debts
by moving elsewhere in the European Union (taking tax revenues with them).
In both Greece and Japan, excessive
debts
will be reduced by means previously regarded as unthinkable.
It would have been far better if
debts
had never been allowed to grow to excess, if Greece had not joined the eurozone on fraudulent terms, and if Japan had deployed sufficiently aggressive policy to stimulate growth and inflation 20 years ago.
But having allowed excessive debt to mount, sensible policy design must start from the recognition that many debts, both public and private, simply cannot be repaid.
If the authorities adopted common-sense policies and sought support from the International Monetary Fund and other multilateral lenders, as most troubled countries tend to do, they would rightly be told to default on the country’s
debts.
Traditionally, low-income countries’ creditors were rich-world governments and multilateral organizations that found it politically unfeasible to call in
debts
if this meant that borrowers had to cut vital public services such as education or health.
In a process that has already taken 15 years – and remains unfinished – the
debts
of 35 highly indebted poor countries (HIPCs) have been forgiven, at a cost of more than $100 billion.
One must hope that the funds raised will be put to good use, and that repayments will not require major sacrifices, as there is currently no agreed mechanism to restructure, let alone cancel, the new
debts.
Sound debt management is, in effect, sound social policy – a lesson that borrowers and lenders alike should heed as they enter into
debts
that, if not properly managed, can turn out to be more complicated than first assumed and more troublesome than anyone expected.
First, Japan’s government ran up enormous
debts.
The strong Yen led to weak demand for Japanese products, and an inability to surmount the pile of bad
debts
through export-led growth.
Relatively slow growth in the money supply also led to deflation, worsening the problems of bad
debts.
If the real (inflation-adjusted) value of nominal
debts
increases, more debtors could fall into bankruptcy.
A renewed commitment to macroeconomic and financial stability allows governments to rein in persistent deficits and growing
debts
and address their economies’ increasing volume of bad loans.
And finally – and importantly for me – the program will have to be designed in a way that ensures that Lebanese parents don’t feel compelled to pull their children out of public school and incur
debts
by educating them privately.
During the Asian financial crisis of the 1990s, some countries suffered foreign-exchange crises, in which devaluation and high real interest rates de-capitalized banks and enterprises, owing to the lack of sufficient reserves to repay foreign-exchange
debts.
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