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Excess in sentence

901 examples of Excess in a sentence

Significantly, it does next to nothing to alleviate the twin problems of excess leverage and inadequate saving.
Far more disconcerting is the willingness of major central banks – not just the Fed, but also the European Central Bank, the Bank of England, and the Bank of Japan – to inject massive amounts of excess liquidity into asset markets – excesses that cannot be absorbed by sluggish real economies.
China’s credit tsunami is financing investment in steel and property, sectors already burdened by massive excess capacity.
Money-market funds take excess cash from investors and use it to purchase short-term IOUs from businesses, banks, and other financial institutions.
Investors might choose other places for their excess cash, like banks.
While household-sector debt was pruned to 115% of disposable personal income in early 2011 from the peak of 130% hit in 2007, it remains well in excess of the 75% average of the 1970-2000 period.
This enabled a consumption binge, which meant that debt was created without a corresponding asset, and encouraged excessive investment in real estate, resulting in excess capacity that will take years to eliminate.
The reason is simple: while base money is soaring, the velocity of money has collapsed, with banks hoarding the liquidity in the form of excess reserves.
Thus, firms have little pricing power, owing to excess capacity, while workers’ bargaining power is low, owing to high unemployment.
But if the deficit countries spend less while the surplus countries don’t compensate by savings less and spending more – especially on private and public consumption – then excess productive capacity will meet a lack of aggregate demand, leading to another slump in global economic growth.
When those bubbles burst, consumers were left with a massive overhang of excess debt and subpar saving.
The resulting excess supply of goods, services, and labor would cause inflation to fall.
Responsibility must be put back at the heart of a system that has sunk into excess.
Yes, the country will find it more difficult to pursue the “Belt and Road Initiative,” for example, or to export its excess capacity.
In other words, while a “savings” glut may contribute to low interest rates and fuel excess credit creation, it is not the main cause.
All of this changed in 2008, when a legislative reform allowed the Fed to pay interest on excess reserves.
In Soviet Russia, Marxism-Leninism incurred comparable excess.
Then note that this pan-European austerity drive took place against the backdrop of massive excess savings over investment.
Finally, note that large excess savings and balanced government budgets necessarily mean large trade surpluses – and thus the increasing reliance of Germany, and Europe, on massive net exports to the United States and Asia.
The US government’s loss of its AAA rating is a first sign that the most important outlet for excess Chinese savings might be losing its luster.
The general lesson from the euro crisis and the US rating downgrade is simple: given that so many countries have chronic excess savings (Germany, Japan, China, oil exporters), the world economy cannot recover without finding ways to channel these excess savings to economies that are both creditworthy and willing to borrow.
In other parts of the economy, where we see excess returns, we usually look for some weakness in competition, or perhaps for the exploitation of insider information, which excludes new entrants.
China does meet the third criterion: a bilateral trade surplus with the US in excess of $20 billion.
It would have been a mistake, for example, to destroy America’s excess capacity in fiber optics, from which US firms gained enormously in the 1990s.
The challenge facing China as it confronts the problem of excess capacity is that those who would otherwise lose their jobs will require some form of support; firms will argue for a robust bailout to minimize their losses.
Excess capacity fuels downward pressure on prices, with negative externalities on indebted firms, which experience an increase in their real (inflation-adjusted) leverage.
Moreover, the magnitude of some of the necessary supply-side reforms will be markedly diminished, precisely because the demand-side measures will reduce excess supply.
One particular worry is that euro-zone money supply is well above the ECB’s benchmark level, indicating an excess supply of liquidity.
It is doubtful that the ECB would raise interest rates to curb excess liquidity so long as economic recovery remains in question.
This should be all the more true for eurozone countries, like Italy or Spain, that are now paying risk premia in excess of 3-4%.
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