Ratios
in sentence
398 examples of Ratios in a sentence
The Reinhart/Rogoff papers’ basic finding continues to hold up: growth tends to be lower on average among countries with debt/GDP
ratios
above 90%.
Why should taxpayers in creditor countries have to take responsibility for financing the euro crisis, especially given that high private wealth/GDP
ratios
may result from low tax revenues over time, while lower
ratios
may reflect higher tax revenues?
Indeed, even after taking on the entire national debt, their private wealth/GDP
ratios
would still be higher than they are in some northern European countries.
Higher capital ratios, lower exposure to bad loans, and more transparent balance sheets increase the chances that the ECB’s quantitative impulses will be transmitted to the wider economy.
Growth prospects have been steadily downgraded; public debt/GDP
ratios
have risen dramatically, despite – or, some might argue, because of – unrelenting fiscal austerity; household debt burdens are not falling; and Italy’s vicious circle of rising debt and falling prices will soon be the fate of other stressed eurozone economies.
But these risks do not outweigh the potential benefits of financial openness, and they can be minimized with effective monitoring and regulation, including requirements for large capital buffers and low leverage ratios, together with strong crisis-response mechanisms, like a resolution trust corporation.
Regulators and governments view the main purpose of financial stress tests as being to persuade some institutions of the urgent need to improve their capital
ratios.
Instead, the easiest way to improve capital
ratios
is to cut lending.
White quotes an OECD study arguing that Japan, the United Kingdom, and the United States may face problems in stabilizing their public debt
ratios.
Those tools include caps, linked to borrowers’ characteristics, on loan-to-value ratios; direct limits on currency and maturity mismatches in financial institutions’ balance sheets; limits on their balance sheets’ interconnectedness; and minimum reserve requirements for specific financial instruments.
In high-functioning democracies such as the United States or the United Kingdom, there is enough collective memory of the problems caused by high debt to allow some support for periodic reduction of debt/GDP
ratios.
Although non-tax revenue may contribute significantly to some countries’ total GDP, the average tax/GDP
ratios
in low-income and lower-middle-income countries are roughly 15% and 19%, respectively – significantly lower than the OECD average of more than 35%.
For example, we know that we should lower interest rates and inject liquidity to fight stagnation, and that we should raise policy rates and banks’ cash-reserve
ratios
to stifle inflation.
It has one of the largest public debt/GDP
ratios
among OECD countries, and its low rates of investment and capital formation, together with sluggish GDP growth, have made it less attractive to foreign investment.
But governments and investors know this, and the result has been much higher debt-to-GDP
ratios
than would have been possible under the gold standard.
Financial markets responded by demanding much higher rates on the bonds of countries with high government debt
ratios
and banking systems weakened by excessive mortgage debt.
Shopped out, savings-less, and debt-burdened consumers have been hit by a wealth shock (falling home prices and stock markets), rising debt-service ratios, and falling incomes and employment.
Sixth, rising government debt
ratios
will eventually lead to increases in real interest rates that may crowd out private spending and even lead to sovereign refinancing risk.
The “school solution,” agreed at the Financial Stability Board in Basel, is that global regulators should clearly identify systemically significant banks and impose tougher regulations on them, with more intensive supervision and higher capital
ratios.
Second, with banks losing substantial amounts of equity capital – estimates now reach $300 billion and more – the need to maintain minimum equity-debt
ratios
will force them to curtail business lending, hindering investment demand.
To be sure, there can be no mistaking China’s mounting corporate debt problem – with nonfinancial debt-to-GDP
ratios
hitting an estimated 157% of GDP in late 2016 (versus 102% in late 2008).
In Europe, by contrast, easy access to the local printing presses before and after the foundation of the ECB, together with the new fiscal rescue mechanisms, ensure that investors start to become nervous only when debt
ratios
are 10-20 times as high.
Poor states that spend public money more wisely improved people's lives quite quickly: Madhya Pradesh and Rajasthan illustrate the value of better governance;Other measures of development, such as the Indian Human Development Index (which includes literacy, infant mortality, access to safe water and durably constructed housing, as well as formal education, poverty ratios, and per capita expenditure), do not show increased inequality;Exclusive focus on the states ignores problems that are concentrated at lower levels: available evidence, albeit limited, suggests that decentralizing policy-making power that is currently exercised at the state level could lead to further improvement in overall economic performance.
The new Basel III capital-adequacy ratios, the ECB’s upcoming asset-quality review and stress tests, and even the European Union’s competition rules (which force banks to contract credit if they receive state aid) all imply that banks will have to focus on raising capital – and thus not providing the financing needed for economic growth.
And the system seems to work: entering the crisis, US states had significantly lower deficit and debt
ratios
than the eurozone’s vulnerable member states.
As a recent study shows, the eurozone’s financial-liberalization process amounted to a more profound shift for the periphery than for the core, with the former having had less open capital accounts, more public banks relative to private ones, higher long-term interest rates, and lower credit-to-GDP
ratios.
Meanwhile, Lebanon’s new leadership must address the government’s dismal fiscal predicament, including a 2016 budget deficit amounting to 8.1% of GDP and government debt totaling 144% of GDP – one of the highest public-debt
ratios
in the world.
It depends on individual eurozone countries – especially Italy, Spain, and France – making the changes in their domestic spending and taxation that will convince global financial investors that they are moving toward budget surpluses and putting their debt-to-GDP
ratios
on a downward path.
The compact sets a strict ceiling for a country’s structural budget deficit and stipulates that public-debt
ratios
in excess of 60% of GDP must be reduced yearly by one-twentieth of the difference between the current ratio and the target.
The effective renunciation of the fiscal compact by Valls and Renzi suggests that these
ratios
will rise even further in the coming years.
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