Overhang
in sentence
143 examples of Overhang in a sentence
There is only one thing worse than a debt overhang, and that is an avalanche.
The ECB can do nothing about the overhang, and it has rightly resisted assuming responsibility for debt problems that are ultimately fiscal in nature.
But the Fund’s elegant compromise still leaves Greece under the shadow of an enormous debt overhang; reducing it requires that Europe find a way to set aside national politics and act on the basis of economic logic and necessity.
Once too many houses have been built, the existing
overhang
depresses the market for a very long time, and unemployed construction workers are usually unable to find jobs elsewhere.
But they ought to be making even deeper concessions on debt repayments, where the
overhang
still creates considerable policy uncertainty for investors.
The eurozone needs higher domestic demand to escape the debt
overhang
left behind by pre-crisis excess.
Continued low interest rates allow unsuccessful companies to struggle on, slowing productivity growth; asset-price rises exacerbate inequality; and monetary stimulus works only by reigniting the private credit growth that generated the debt
overhang
in the first place.
Nonetheless, China does need to address its domestic debt
overhang.
Worse still, in the medium turn the monetary
overhang
may lead to significant inflationary risks.
The refusal of the rest of Europe, and especially Germany, to acknowledge Greece’s massive debt
overhang
has been the big lie of this crisis.
The fact that the Greek debt
overhang
was acknowledged only after negotiations had collapsed exposes the deep systemic failures that have brought Greece and Europe to this point.
But it glosses over the thorny issue of state-owned enterprise reform that may be required to resolve this contradiction and avoid the Japanese “zombie” problem of a chronic debt
overhang.
During the “lost decade” of the Latin American debt crisis in the 1980s, Brazil and Mexico had a significant and promising growth pickup in 1984-1985 – before serious problems in the banking sector, an unresolved external debt overhang, and several ill-advised domestic policy initiatives cut those recoveries short.
How Japan will resolve its public and private debt
overhang
is yet to be determined.
That way, today’s debt would be less likely to become tomorrow’s debt
overhang.
In the short term, policymakers should explore other avenues for solving the public-debt
overhang.
Moreover, the
overhang
of excess capital that accumulated during the crazy high-tech boom of the 1990's has now been mostly worked out.
As everyone at the IMF knows, a debt
overhang
is a vast unfunded tax liability that says to investors: enter at your own risk.
The
overhang
is a blockade against growth.
The immediate answer is that the boom preceding the global financial crisis of 2008 left advanced economies with an
overhang
of growth-inhibiting debt.
Or else they can wait until the
overhang
of excess capacity diminishes, capital goods become obsolete, and the economy’s internal restorative forces work their gradual magic.
To overcome its balance-sheet recession, the eurozone needs to clean up its banks, reduce the crushing
overhang
of mostly private debt, redress the huge shortfall in investment, eliminate barriers to enterprise, and tackle the deflationary drag of German mercantilism.
Greek public expenditures have fluctuated between 50% and 59% of GDP since 2010, creating a massive debt
overhang
and hindering growth.
Unconventional monetary policies have created a massive
overhang
of liquidity.
In the US, a lingering
overhang
of household debt implies that deleveraging and the rebuilding of savings continues to take precedence over discretionary consumption.
Tough regulation and record-low interest rates left companies and households with no debt
overhang
and little need to deleverage.
In part, we are victims of a self-fulfilling pessimism – the view that a debt
overhang
dooms us to unemployment and stagnation, with nothing to be gained by attempting to use fiscal expansion or monetary innovation to counter it.
So the focus remains on monetary and fiscal stimulus – and as much of it as possible, given the deadening effects of debt
overhang.
And when the time comes, action must be sufficiently bold to do away with the debt
overhang
and encourage private investment.
But slow progress is a far less important challenge to growth prospects than the debt
overhang
in developed economies, or infrastructure and educational deficiencies in many developing economies.
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