Ratio
in sentence
1146 examples of Ratio in a sentence
There is a way out of this trap, but only if we tilt the discussion about how to lower the debt/GDP
ratio
away from austerity – higher taxes and lower spending – toward debt-friendly stimulus: increasing taxes even more and raising government expenditure in the same proportion.
That way, the debt/GDP
ratio
declines because the denominator (economic output) increases, not because the numerator (the total the government has borrowed) declines.
We do not need to rely on such tricks to stimulate the economy and reduce the
ratio
of debt to income.
(And, in fact, many still claimed that the rally was not unsustainable, as the stock market was trading at a forward price-to-earnings
ratio
of about 15, consistent with its ten-year average, in mid-April.)
The
ratio
of the labor force (that is those who are employed and those unemployed who are actively looking for work) to the number of people of working age is equal to 75% in USA, 76% in Great Britain, around 68% in France and Germany, and 58% in Italy.
They calculated that 75% to 80% of economic growth did not come from increasing the capital-output
ratio
– at least not if the private marginal product of capital was taken as an indicator of the social marginal product.
If Japan had followed Bernanke’s advice in 2003 and implemented a moderate money-financed stimulus, it would today have a slightly higher price level and a lower debt-to-GDP
ratio.
It is imperative that policymakers and politicians understand that a balanced budget and stable debt to income
ratio
in any one year is no indication that future generations will be spared the burden of overspending by today’s generation.
That is why one should look at the unemployment
ratio
– the percentage of the unemployed in the reference population – rather than at the unemployment rate.
The unemployment
ratio
among teenagers in Greece is thus less than 6%.
Among those in the 20-24 age group, the difference between the reported unemployment rate and the percentage of youth without a job and looking for one (the unemployment ratio) is less stark.
But, even among this age group, one finds that the unemployment
ratio
is often about one-half of the widely reported unemployment rate.
A society in which the wealth-to-annual-income
ratio
is a very large multiple of the growth rate is one in which control over wealth falls to heirs – what Geier elsewhere has called an “heiristocracy”; such a society is even more unpleasant in many ways than one dominated by a meritocratic and entrepreneurial rich elite.
And, indeed, Matt Rognlie has attacked (4), arguing that the return on wealth varies inversely with the wealth-to-annual-income
ratio
so strongly that, paradoxically, the more wealth the rich have, the lower their share of total income.
Cowen noted that while the unemployment rate had fallen, the employment-to-population
ratio
had barely budged.
Cowen and Caplan should not have relied on the unemployment rate alone; they should have included the employment-to-population
ratio
and other metrics they agreed would have diagnostic value.
Under plausible assumptions – namely that the wealthy save enough – the
ratio
of inherited wealth to income (or wages) continues to increase as long as r, the average rate of return to capital, exceeds g, the growth rate of the economy as a whole.
As America’s terms of trade (the
ratio
of export prices to import prices) deteriorate, demand is shifted toward US goods, keeping the economy at full employment.
As the world’s largest currency issuer, China’s broad money supply (M2) is 1.5 times larger than that of the United States, with an M2/GDP
ratio
of about 200%, compared to about 80% in the US.
But, since 2008, credit expansion has proceeded at a staggering pace, driving the debt/GDP
ratio
above 200%, with private credit alone (including to state-owned enterprises) amounting to 130% of GDP.
For example, as the old-age dependency
ratio
rises, so will health-care and pension costs.
A constant debt-GDP
ratio
is thus a key indicator of fiscal sustainability.
Surpluses are used to pay off debt, and the deficits are financed by acquiring debt, leaving the debt-GDP
ratio
constant over the cycle.
According to the official numbers, NPLs do not actually account for a very high share of total assets, and the NPL
ratio
(0.96%) is manageable.
The problem is that most of China’s NPLs are off-balance-sheet loans, so the NPL
ratio
may be much higher – and China’s financial sector much riskier – than anyone realizes.
If borrowers default on their off-balance-sheet loans, banks might choose to protect their reputations by covering the difference using internal funds, thereby transferring the risk onto their balance sheets and increasing the NPL
ratio.
During the late-1990’s Asian financial crisis, China’s four major state-owned banks, which accounted for more than half of the country’s banking sector, had a capital-adequacy
ratio
of only 3.7% (compared to the international standard of 8%) and an NPL
ratio
of roughly 25%.
In these countries, the revenue-to-GDP
ratio
almost tripled in just 20 years, from 22% in 1995 to 64% in 2016 – far higher than the
ratio
in other emerging economies, and approaching high-income country levels.
With the household debt-to-asset
ratio
now approaching levels last seen in the 1990s, consumers have plenty of capacity to ramp up their borrowing.
From 2005 to 2014, total public investment has more than doubled relative to national income, from 6% to 13%, and the government intends to push the
ratio
even higher in coming years.
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