Debts
in sentence
1153 examples of Debts in a sentence
The country’s largest such crisis, in 2001, brought down the local banking system and caused the Argentine government to default on its
debts.
In the meantime, depreciation or devaluation (which has been even more dramatic in the black market) will not boost exports much, because a single or handful of commodities – prices for which remain depressed – dominate these countries’ tradable sectors, while public and private
debts
are denominated in US dollars.
But, because of elevated
debts
or remaining deficits, countries in need of further growth are also those that lack fiscal space.
To survive and thrive, the eurozone will need to become more centralized, with some common fiscal revenues, expenditures, and
debts.
To my mind, the biggest failure of post-2008 economic policy has consisted in governments’ inability to find creative ways to write down unsustainable debts, for example in US mortgage markets, and in Europe’s periphery.
External borrowing is becoming a serious problem – one that is likely to intensify, as continued interest-rate hikes by the US Federal Reserve raise the costs of rolling over
debts.
He assured Chinese leaders that the United States is committed to honoring all its debts, despite its recent credit downgrade; he talked enthusiastically about US-China interdependence; and he showcased his granddaughter, who has studied Chinese for several years, as a future bridge between the two countries.
But countries with large external imbalances, low reserves, or high
debts
will increasingly feel financially constrained, if they don’t already.
In an era when public debt write-offs (haircuts) are widely viewed as unacceptable (witness the European Union’s position on Greece) and governments are often reluctant to write off private
debts
(witness Italy’s reluctance to impose a haircut on holders of banks’ subordinated debt), sustained negative ex post returns are the slow-burn path to reducing debt.
The Global Economy’s Fundamental WeaknessGENEVA – When Lehman Brothers declared bankruptcy ten years ago, it suddenly became unclear who owed what to whom, who couldn’t pay their debts, and who would go down next.
Because runs on banks can trigger widespread distress, governments explicitly guarantee insured deposits and implicitly guarantee all the other
debts
of mega-banks.
But migration from crisis-hit countries, partly to avoid repaying legacy
debts
(some of which were forced on these countries by the European Central Bank, which insisted that private losses be socialized), has been hollowing out the weaker economies.
Argentina did so in 2001, when it “pesofied” its dollar
debts.
A similar “drachmatization” of euro
debts
would be necessary and unavoidable.
But that is logically flawed: even with deflation, real purchasing power would fall, and the real value of
debts
would rise (debt deflation), as the real depreciation occurs.
Reintroducing the drachma risks exchange-rate depreciation in excess of what is necessary to restore competitiveness, which would be inflationary and impose greater losses on drachmatized external
debts.
The experience of Iceland and many emerging markets over the past 20 years shows that nominal depreciation and orderly restructuring and reduction of foreign
debts
can restore debt sustainability, competitiveness, and growth.
In accordance with the Fiscal Compact, member countries would be allowed to issue new Eurobonds only to replace maturing ones; after five years, the
debts
outstanding would be gradually reduced to 60% of GDP.
If a member country ran up additional debts, it could borrow only in its own name.
There is no question that the crisis left the country unable to service its
debts.
Griesa, for his part, showed no compunction about upending a financial order in which market-based exchanges of old bonds for new ones are used to restructure the
debts
of countries unable to pay.
The creation of seed monopolies, and with them crushing
debts
to a new species of moneylender – the agents of the seed and chemical companies – has taken a high human toll as well.
On the other hand, net-foreign-asset positions of countries with a short-term orientation and a low savings rate tend to deteriorate, while their foreign
debts
mounts.
Trump’s vow to tear up the rules is a recipe for another Great Depression, with massive unemployment and millions of people unable to pay their mortgages, student loans, and other
debts.
Countries’
debts
undoubtedly play a vital role in the global financial system.
But today, the ongoing economic recovery – and the fact that governments and central banks hold the majority of countries’
debts
– makes such a market response far from guaranteed.
The Tequila crisis demonstrates that rapid multilateral action - in this case, a $50 billion package to refinance short-term
debts
at below-market rates - can also be effective in preventing the spread of contagion.
First, the falling price level would raise the real value of the
debts
that households and firms owe, making them poorer and reducing their willingness to spend.
And yet a third explanation is that central bankers want to keep interest rates low in order to reduce the budget cost of large government
debts.
The catalyst for exchange-rate appreciation would be not only higher US interest rates, but also a dollar squeeze in emerging markets, where foreign
debts
have increased by $3 trillion since 2010.
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