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He also led efforts to increase foreign investment in Africa and to encourage debt relief for African countries.
Such figures suggest that banks' non-performing loans may increase further, hampering recovery still more.There is much that governments in the region can do to encourage debt restructuring.
To some extent, however, deductions on mortgage interest encourage debt.
In this context, corporate taxes encourage debt as interest is paid from pre-tax corporate earnings, while at the same time too much debt can cause an underinvestment problem.31 Combining operations can reduce the variance of the total investment outcome, which helps in resolving the underinvestment problem.
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Encouraging debt rather than creating jobs, Help to Buy poses as a vote-winner.
Commercial loans are outlawed by legislation which forbids casinos to allow gaming on credit because it encourages debt.
"I am confident that holding rates down at artificially low levels over extended periods encourages bubbles, because it encourages debt over equity and consumption over savings," Mr. Hoenig said.
This does happen occasionally (the tax code encourages debt), but banks would not be lending money to private equity-owned companies, decade after decade, if those companies weren't generally prosperous and creditworthy.
It happens that as families struggle they find themselves in financial hardship, which frays marriages and encourages debt.
For several years, the European Commission has encouraged debt-ridden members of the European Union to embrace environmental taxes, saying that its economists have concluded they have "a less detrimental macroeconomic impact" than new income taxes or corporate taxes.
He willingly lost billions of dollars in start-up costs for credit-card and ATM machines, and was faulted for encouraging individual debt and soulless service; but these inventions proved to be the future of retail banking".Countries do not go bankrupt Abroad, he reconstructed Citi's vast international network, gutted by the war and the Depression.
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