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To finance deficits, the government must sell bonds to investors, competing for capital that could otherwise be used to invest in stocks or corporate bonds.
Could you, like Goldman Sachs, draw off your deep team capabilities to generate new investment banking offerings to firms competing for capital in the public markets?
"Today, the main impact of tight money is through changes in the prices of stocks," which gives healthier companies an advantage in competing for capital.
"When you're competing for capital with all these other businesses that are so much bigger, it's hard to get anything," Linda I. Heasley, The Limited's chief executive, said in an interview on Wednesday.
(See "Competing For Capital").. Conversely, a decline in deficit spending buoyed corporate bond markets before 2007, argued Louise Purtle, CreditSights' chief strategist.
A whopping 75% of pitches submitted to VC funds in the U.K. come from all-male founding teams, and the remaining pitches from all-female or mixed founding teams are significantly disadvantaged versus all-male teams competing for capital.
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"You obviously have to compete for capital expenditures.
"This will increase Qantas's ability to compete for capital and to form strategic partnerships in an increasingly globalized industry," the transport minister, Anthony Albanese, said.
But fund managers and others, including some European bankers, say the changes of the last few years will accelerate as companies compete for capital.
If countries compete for capital in the shape of foreign direct investment (FDI), from the point of view of multinational enterprises (MNEs), there is a market for the social order on offer in different nation states.
Rajasthan, Madhya Pradesh and a few others are making a start by easing labour laws.The process has been dubbed "competitive federalism": states are meant to compete for capital and talent (a process China has managed without the federalism).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com