Purchases
in sentence
793 examples of Purchases in a sentence
But with long-term interest rates now close to zero, bond
purchases
would not be able to lower them any further.
But the political process may generate poorly timed or ineffective responses – focused on transfers rather than purchases, infra-marginal tax rebates, and spending that fails cost-benefit tests – that do little good in the short run and cause substantial harm later.
Second, the authorities want to reduce spending by lowering subsidies, rationalizing the country’s massive public investment program, and diverting spending on arms away from foreign
purchases.
By maintaining its policy of quantitative easing (QE) – which entails monthly
purchases
of long-term assets worth $85 billion – the Fed is courting an increasingly treacherous endgame at home and abroad.
FRANKFURT – It looks like a coordinated offensive: on September 6, the European Central Bank outlined a new bond-buying program, letting markets know that there were no pre-set limits to its
purchases.
All of its asset
purchases
will be sterilized, meaning that their monetary-policy effects will be offset.
Then came the “taper tantrum” in the spring of 2013, when US long-term interest rates shot up by 100 basis points after then-Fed Chairman Ben Bernanke hinted at an end to the Fed’s monthly
purchases
of long-term securities.
In the eurozone, euphoria followed the ECB’s decision to provide support with potentially unlimited
purchases
of distressed countries’ bonds.
Monetary hawks – the Bundesbank and several other core central banks – who were worried about a new open-ended ECB mandate pushed successfully for strict and effective conditionality for countries benefiting from the bond
purchases.
Transparency International, an international nonprofit organization, is mobilizing a broad constituency behind efforts to reform government procurement systems by advocating a code of conduct for government
purchases.
The main refinancing rate would then only be the rate at which the peripheral EU countries draw ECB money for
purchases
in the center of Europe, which ultimately would be the source of all the money circulating in the euro area.
Indeed, India’s $5 billion of US weapons
purchases
accounts for an astonishing 20% of the $24.8 billion in US arms sales in 2007.
But policymakers should have recognized that even these better rationales had limits, and that massive sustained current-account deficits are often a blinking red signal of deeper problems – in this case, over-borrowing by households to finance home
purchases.
When it comes to ECB
purchases
of government bonds, no one understands exactly for how long and for what purpose the new weapon is to be used – which reduces its effectiveness.
To mitigate these risks, most countries have implemented requirements for open bidding processes and strict transparency rules for government
purchases.
In this way, a government that is exacting about the quality of its
purchases
can have a powerful impact on the evolution of its country’s comparative advantage.
The lessons from army
purchases
can be applied elsewhere.
As the private sector
purchases
more of that debt, demand for goods and services falls, creating deflationary pressure.
Pessimists stress the feared reversal of private capital flows, owing to the US Federal Reserve’s tapering of its
purchases
of long-term assets, as well as the difficulties of so-called second- and third-generation structural reforms and the limits to “catch up” growth outside of manufacturing.
And he is right to emphasize that all have made terrific progress and now offer great opportunities for the rising middle class, which wants to accumulate savings, borrow more easily (for productive investment, home purchases, education, etc), and, more generally, smooth out consumption.
But, increasingly, official financing is coming from the European Central Bank – first with bond purchases, and then with liquidity support to banks and the resulting buildup of balances within the eurozone’s Target2 payment system.
With political constraints in Germany and elsewhere preventing further strengthening of fiscally-based firewalls, the ECB now plans to provide another round of large-scale financing to Spain and Italy (with more bond purchases).
When Inflation Doves CryPITTSBURGH – The Wall Street Journal recently ran a front-page article reporting that the monetary-policy “doves,” who had forecast low inflation in the United States, have gotten the better of the “hawks,” who argued that the Fed’s monthly
purchases
of long-term securities, or so-called quantitative easing (QE), would unleash faster price growth.
For example, a tax subsidy for car
purchases
caused GDP to rise in the third quarter of 2009, with more than two-thirds of the increase attributable to motor-vehicle production.
The second quarter benefited from a surge in home purchases, as individuals rushed to take advantage of the tax subsidy for home buyers that expired in April.
At the same time, American millennials (those born between 1982 and 2004) are postponing marriage and home or car purchases, with many telling pollsters that the postponement will be permanent.
In the advanced countries, the market for first-time
purchases
of mass-market goods like cars, refrigerators, and televisions is saturated, while the secondary market for used and reconditioned goods has become much less dynamic, undermining employment in repairs and renovations.
The End of the Emerging-Market PartyCAMBRIDGE – Enthusiasm for emerging markets has been evaporating this year, and not just because of the US Federal Reserve’s planned cuts in its large-scale asset
purchases.
By now the overall sum of credit via intergovernmental rescue operations and the ECB has reached €1.185 trillion (€707 billion in GIPSIC Target liabilities minus GIPSIC claims from under-proportional banknote issuance, €349 billion in intergovernmental rescue funds, including those from the IMF, and €128 billion in GIPSIC government bond
purchases
by non-GIPSIC national central banks; seewww.cesifo.org
Thus, it is possible that increased government spending – say, to boost car
purchases
– could exacerbate the misalignment.
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