Purchases
in sentence
793 examples of Purchases in a sentence
One reason for this is that long-term interest rates are affected not just by the actual bond purchases, but also by financial markets’ expectations about future monetary policy.
Indeed, just one day after the ECB made its announcement – and weeks before the
purchases
began – interest rates fell by a fraction of a percentage point throughout the eurozone.
When the
purchases
began, rates did continue to fall for a few weeks, so much so that many were concerned that there would not be enough German bonds to meet the ECB’s country-debt quota (determined according to eurozone member states’ GDP and population).
QE is supposed to work via “portfolio balance effects,” which implies that markets are not fully efficient:
purchases
of longer-term bonds affect financial conditions by changing the types and quantity of financial assets the public holds.
They have followed the same logic since the
purchases
began, ignoring recent increases in interest rates, while lauding the small rise in inflation expectations as proof of QE’s effectiveness.
Moreover, the mechanisms by which the US Federal Reserve’s
purchases
of asset-backed securities stimulate consumer spending – low mortgage rates, widely available home refinancing, high housing prices, and home-equity withdrawal – function differently in the eurozone.
Costs to governments include maintenance of health facilities,
purchases
of drugs and supplies, public-health interventions such as spraying insecticide or distributing insecticide-treated bed nets, and lost revenue from taxes and tourism.
If China refuses to do so, Polo’s
purchases
will have to be restricted.
Soon, every country in the world
purchases
V$ bonds to hold in their foreign-exchange reserves, thereby effectively financing Venice’s large budget deficits.
Long periods of negative interest rates facilitated the unsustainable financing of asset purchases, with high-risk mortgages weakening national balance sheets.
Draghi reversed the euro’s slide into oblivion by promising potentially unlimited
purchases
of member governments’ bonds.
But they can also employ a range of other unconventional tools more aggressively, from asset
purchases
(so-called quantitative easing) to negative interest rates.
As a result, there is no risk of portfolio outflows resulting from the Fed’s tapering of its monthly asset
purchases.
Indeed, the European Central Bank is dithering about how much to expand its balance sheet with
purchases
of sovereign bonds, while the Bank of Japan only now decided to increase its rate of quantitative easing, given evidence that this year’s consumption-tax increase is impeding growth and that next year’s planned tax increase will weaken it further.
Selfless SeigniorageNEW YORK – As the central banks of major developed economies have intensified quantitative easing (QE, or large-scale
purchases
of government bonds and other long-term securities), developing-country leaders have increasingly voiced concern about the policy’s adverse impact on their economies’ stability and growth.
Through their huge
purchases
of goods, with promises of even more to come, today’s authoritarian/mercantilist regimes in Russia and China may be about to achieve by commerce what the Soviets could not achieve by bribery and threats.
Dialogue between the US Congress and Facebook, Twitter, and Google has intensified in the last few weeks, as clear evidence of campaign-ad
purchases
by Russian entities has emerged.
And the Federal Reserve has validated this seemingly uplifting scenario by starting to taper its
purchases
of long-term assets.
And, of course, China could always curtail its
purchases
of US Treasuries, with serious consequences for financial asset prices.
A credible long-term program of reforms must be implemented now, while temporary emergency measures – bond
purchases
by the EFSF, IMF, and the ECB – provide breathing room.
As underscored in a joint statement of the US and China regarding trade consultations, “significantly” increased Chinese
purchases
of foreign – in particular, US – goods and services will also enable the country “to meet the growing consumption needs of the Chinese people and the need for high-quality economic development.”
Expanding the share of consumer goods might significantly improve the welfare of Chinese citizens, who, because of existing tariffs and non-tariff barriers, now often travel abroad to make
purchases.
In fact, international
purchases
by Chinese are now equivalent to the value of all of the consumer goods China currently imports, even without taking into account fast-rising online overseas
purchases.
Shifting those
purchases
to China would help propel the shift toward a more consumption-driven economy, particularly as the middle class – and its purchasing power – grows.
The mere possibility that the Fed might reduce its
purchases
of long-term assets – the so-called “taper” – sent market interest rates in the United States soaring and currencies in countries like Brazil, Turkey, and India plummeting.
Disagreement among and between heads of state and the ECB over the Bank’s
purchases
of distressed sovereign debt have only added to the uncertainty.
The ECB can curb the euro’s appreciation through
purchases
of foreign currency.
Now, with the Fed publicly considering an end to its massive, open-ended
purchases
of long-term securities and foreign capital fleeing home from emerging markets, many fear that Asia’s economies could come crashing down, as they did in the late 1990’s.
To be sure, the ECB could expand its
purchases
of long-term bonds.
One of the goals of large-scale bond
purchases
– so-called quantitative easing – was to drive down long-term interest rates in order to stimulate business investment and housing construction.
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