Purchases
in sentence
793 examples of Purchases in a sentence
Despite the ECB’s imposition of conditionality on beneficiaries of its “potentially unlimited” bond purchases, financial markets across Europe and the United States staged a major rally.
Since 2000, the US and other countries have squandered trillions of dollars on wars and arms
purchases.
Of course, some believe that the Fed’s mass
purchases
of US debt poses an even bigger risk than Europe’s sovereign debt crisis.
That was the question faced by the Federal Reserve at the height of its quantitative-easing program, when its monthly
purchases
of long-term assets drove yield-hungry investors into these countries, causing their currencies and asset prices to rise.
And it is still a pressing question today, now that the Fed is winding down its asset purchases, causing capital flows to reverse and leaving many EMDCs high and dry.
If we were to judge that the economy is in need of further stimulus, one option could be to extend the ECB’s outright asset
purchases
to other asset classes.
But it is important to remember that asset
purchases
are not an end in themselves.
For example,
purchases
of bonds issued by euro-area non-financial corporations (NFCs) would probably have some direct pass-through effect on firms’ financing costs.
For a while now, the US Federal Reserve has been well ahead of other systemically important central banks in normalizing monetary policy – that is, raising interest rates, eliminating large-scale asset purchases, and starting the multi-year process of shrinking its balance sheet.
After all, once such
purchases
are initiated, the market will likely test the ECB to find out where it will draw the line.
The rate of so-called core inflation (which excludes energy purchases) was 1.8%.
While cynics say that its only achievement is to make consumers feel better about their
purchases
– rather like buying indulgences in the old Catholic Church – this is to sell fair trade short.
The Fed’s bout of indigestion started with Chairman Ben Bernanke’s June 19 press conference, where he warned that the Fed’s
purchases
of long-term securities might start to taper off if the economy continued to perform well – specifically, if unemployment fell to 7%.
When and how
purchases
of long-term securities were reduced would depend on incoming data.
In the absence of inflation, it was mainly warnings about new asset bubbles that pressured the Fed to curtail its
purchases
of long-term securities.
Specifically, China would have to use its market power to promote pricing in renminbi for relevant manufactured exports and raw-material imports, and encourage renminbi denomination of foreign financial assets that China
purchases
(which the country’s status as a net creditor should facilitate).
On the contrary, it has lost market share among the largest oil importers in Asia, which have increased their
purchases
of West African crude (diverted from the US).
Boycotts of sweated college t-shirts in the United States led to fairer manufacturing practices, and boycotts of coffee and produce, led mostly by women consumers, resulted in fair-trade
purchases
by major supermarkets.
The second recommendation pertains to the mechanics of liquidity injection, much of which takes place nowadays – in Europe, Japan, and elsewhere – through asset
purchases.
Asset
purchases
have no balance-sheet effect, because assets replace money.
At the same time, the US should reconsider antiquated Cold War restrictions on Chinese
purchases
of technology-intensive items.
To be sure, the US Federal Reserve has moved away from monetary expansion since late 2013, when it began progressively reducing and ultimately halting bond
purchases
and shrinking its balance sheet.
In fact, although GDP growth remains sluggish and unemployment is still well above the target rate, the US Federal Reserve may soon terminate its
purchases
of Treasuries and mortgage-backed securities, effectively admitting that QE has failed and may now be counterproductive.
The final, technical reason why interest rates are not likely to rise excessively is that years of central-bank
purchases
and a shrinking US budget deficit have made US Treasuries scarce.
Once banks offer new assets denominated in renminbi, more customers will be drawn into the market, thereby adding liquidity and reducing transaction costs for
purchases
of renminbi in European currencies.
Despite its recent weapons
purchases
from the US, Saudi Arabia would still be outmatched in a military confrontation with Iran.
Similarly, Germans have been critical of the ECB’s monetary-policy instruments, especially its “outright monetary transactions” program, with opponents appealing to the German constitutional court to invalidate the OMT scheme’s conditional
purchases
of eurozone government debt.
Purchases
of advertising are a second method of providing government support.
But, to placate the British, Harry Dexter White, the US Treasury official now remembered as the architect of the Bretton Woods Agreement, inserted Article 7 to allow dollar-deprived member states to restrict their
purchases
of US goods.
To preserve the EU, the European Central Bank had to step in with negative interest rates and asset
purchases.
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