Sheet
in sentence
661 examples of Sheet in a sentence
But history suggests that fixing a central bank’s balance
sheet
is never pleasant.
Unlike floating ice, which does nothing to the sea level when it melts, there is enough of this ice
sheet
above the surface that it could raise the sea level by something like 20 feet if it glaciated into the ocean, inundating coastal cities everywhere.
From November 2008 to November 2014, successive QE programs added $3.6 trillion to the Fed’s balance sheet, nearly 25% more than the $2.9 trillion expansion of nominal GDP over the same period.
Many countries now have over-heated property and equity markets; in the US, the S&P 500 index since 2009 has closely tracked the expansion of the Fed’s balance
sheet.
In short, despite a strong national balance
sheet
and ample central-bank liquidity, China is confronting a localized subprime problem, owing partly to high reserve requirements.
More generally, China must deploy its large balance
sheet
to deliver income or benefits that expand what households view as safely consumable income.
But the balance
sheet
with respect to strengthening democracy isn’t nearly as favorable.
Compiling an accurate balance
sheet
– knowledge that is, despite its importance, shockingly rare in most cities – is a crucial step toward adopting a management-focused approach.
The balance is not reported on the ECB’s balance sheet, since it is zero in the aggregate, but it does show up on the respective balance sheets of the national central banks as interest-bearing claims against, and liabilities to, the ECB system.
Capital, in this context, is simply a synonym for equity, which is on the liability side of a bank’s (or anyone’s) balance
sheet.
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.
Before the recent Italian election, financial markets showed signs of optimism, encouraged by the European Central Bank’s policy of guaranteeing eurozone members’ sovereign debt, expanding its balance sheet, and lowering interest rates.
There is a strong case to be made for using the EU’s balance
sheet
to finance the surge.
Research published this month concluded that consuming all remaining hydrocarbons would result in the melting of the entire Antarctic ice sheet, potentially raising sea levels by 58 meters.
If, on the other hand, we believe that economic actors will respond rationally to incentives and information, then we can usefully reform regulatory frameworks with well-targeted measures, including restrictions on off-balance
sheet
vehicles, tougher disclosure requirements, and controls on rating agencies’ conflicts of interests.
Given the expansion of the US Federal Reserve’s balance sheet, its purchase of long-term Treasuries, the Fed’s historical record of being late and slow in raising interest rates, and the explosion of US public debt, there is fear of an eventual monetization of the US debt and future inflation.
Indeed, in many countries, bank guarantees can be issued only on the basis of local subsidiary equity, without support from the parent’s balance
sheet.
In Ireland and Spain, transferring the banking system’s huge losses to the government’s balance
sheet
– on top of already-escalating public debt – will eventually lead to sovereign insolvency.
By modifying these accounts within the public-sector balance sheet, expected pensions will be unchanged, while the public debt/GDP ratio will fall by eight percentage points.
Most economists also agree that it is a mistake to look at only one side of a balance
sheet
(whether for the public or private sector).
And Germany is right to point out that its strong balance
sheet
underpins Europe’s fragile stability today.
At the same time, it is also true that Germany could have been more forthcoming and more liberal in using its balance
sheet
to defuse debt-overhang problems in periphery countries like Portugal and Greece, and perhaps even Ireland and Spain.
As former United States Deputy Secretary of the Treasury Frank Newman argued in a recent book, Freedom from National Debt, a country’s capacity for fiscal intervention is better assessed by examining its aggregate balance
sheet
than by the traditional method of comparing its debt (a liability) to its GDP (a flow).
And, while no one can be certain about where the limits lie, there are both theoretical and operational bounds to how many government bonds can (and should) be placed on the balance
sheet
of a modern, well-functioning central bank.
These complaints are all the more peculiar given that Germany is a major beneficiary of the OMT announcement: its direct financial risks, via balances in the eurozone’s Target2 system and the size of the ECB’s balance sheet, have shrunk, despite the eurozone recession.
If the central bank attempts to spur inflation by expanding its own balance
sheet
through monetary expansion and by lowering interest rates, it will cause the budget deficit to fall further, reinforcing the cycle.
But the policy also impaired the private sector’s balance sheet, because it functioned as a tax on financial institutions.
In Switzerland, the two largest banks (UBS and Credit Suisse) had a combined balance
sheet
in fall 2008 of around 8 times Swiss GDP – mostly based on their global activities.
Today, the imminent crisis is in Europe, where the European Central Bank seems to be putting its own balance
sheet
and those of European banks – loaded with debt from Ireland, Greece, and Portugal – above the well-being of these countries’ citizens.
I am puzzled, and frankly appalled, by the Fed’s failure to explain how it will restore its balance
sheet
to a non-inflationary level.
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