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Leverage in sentence

1018 examples of Leverage in a sentence

Excessive leverage, rather than skills, can be seen as the source of their resulting profits, which then flow disproportionately to employees, and of their sometimes-massive losses, which are borne by shareholders and taxpayers.
On the diplomatic front, it has often been suggested that China should use its considerable leverage to push North Korea to abandon its nuclear weapons voluntarily.
Flexibility is key to efforts to leverage the world’s growing reliance on biofuels to boost agricultural productivity, accelerate rural development, and increase food security.
That includes the supplementary leverage ratio required of the largest banks, which newly appointed regulators are working to relax.
However, the Palestinian bid at the UN will internationalize the Palestinian-Israeli conflict and discredit US mediating leverage.
It also ensures that real asset and liability values are always equal, while prohibiting excessive leverage and several forms of complicated securitization.
It is also problematic that, in many countries, debt receives advantageous tax treatment, which favors leverage over equity and profit/loss-sharing arrangements.
In every economy, the argument goes, there is a market interest rate determined by the financial system, and there is a natural interest rate – the value at which desired savings at full employment equal desired investment at full employment, and at which the economy as a whole desires neither to leverage nor to deleverage.
If the economy as a whole desires to leverage up, the result is an inflationary boom.
Fueled by massive credit growth (equivalent to 30% of GDP from 2008 to 2012), the Chinese economy has taken on a level of financial leverage that is the highest among emerging markets.
Each crisis-hit economy had increased its financial leverage – the ratio of domestic credit to GDP – by 30 percentage points over five years shortly before their credit bubbles popped.
Economists who insist that China’s financial leverage is not too high are a dwindling minority.
Certainly the People’s Bank of China, which engineered a credit squeeze in June in an attempt to discourage loan growth, seems to believe that financial leverage has risen to dangerous levels.
But these risks do not outweigh the potential benefits of financial openness, and they can be minimized with effective monitoring and regulation, including requirements for large capital buffers and low leverage ratios, together with strong crisis-response mechanisms, like a resolution trust corporation.
This was because they had less leverage to be unwound and less footloose capital that could leave in the event of a global financial squeeze.
China, the world’s biggest dam builder – with slightly more than half of the approximately 50,000 large dams on the planet – is rapidly accumulating leverage against its neighbors by undertaking massive hydro-engineering projects on transnational rivers.
Otherwise, China is likely to emerge as the master of Asia’s water taps, thereby acquiring tremendous leverage over its neighbors’ behavior.
White and I agree that the fundamental driver of the 2007-08 financial crisis was a huge increase in leverage throughout the economy.
Indeed, there is a growing body of persuasive evidence (for example, recent work by Alan Taylor and Moritz Schularick) that the aggregate level of leverage in the real economy – private sector as much as public – is a crucial macroeconomic variable.
Above some level of leverage, additional debt increases macroeconomic vulnerability to financial crisis and post-crisis deleveraging.
But if deficits are funded by interest-bearing debt, leverage simply shifts from the private to the public sector, raising questions about long-term public-debt sustainability.
And ultra-easy monetary policy will work only if it stimulates increases in private leverage – the very problem that got us into this mess in the first place.
But the experience of Japan over the last 20 years shows that without moderately positive nominal GDP growth, aggregate leverage (private and public combined) tends to increase relentlessly.
It seems unlikely that not a single central bank analyst was the least bit worried about the massive growth in credit and leverage at the time.
The US seems more reluctant than ever to exercise the leverage that it still has to press China to correct policies that threaten to distort trade, foster huge trade imbalances, and spark greater competition for scarce raw materials.
US policy today is a study in contrast relative to America’s unabashed exercise of leverage in the 1970’s and 1980’s, when Japan emerged as a global economic powerhouse.
But diplomats and military brass alike should be willing to take a step back when appropriate, condition their interactions, and make use of available leverage – even at the risk of a counterpart’s wrath.
But, as recent revelations about purveyors of shell companies or bribery by intermediaries demonstrate, much of the real leverage is to be found at home – in the domestic financial and property industries, in public relations and law firms that burnish kleptocrats’ images, and in universities that educate corrupt officials’ children and solicit their donations.
In 1998, when LTCM went bust, it became all too clear that the firm was basically making massive quantities of simple bond trades, with huge leverage and huge risk.
As the only party to both initiatives, the US is well placed either to move them forward in harmony or to leverage the progress of one negotiation against the other.
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