No doubt a sovereign government has greater borrowing capacity and credibility than an individual household.

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Additionally, if a company is perceived to own very valuable assets, that might enhance borrowing capacity too.

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Or they may lack the wealth or borrowing capacity to make smoothing work, and are therefore accustomed to living paycheque by paycheque.

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It's also rolled out city deals to the likes of Newcastle, Liverpool and Manchester which will give the councils extra powers and borrowing capacity.

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There is a limit to our borrowing capacity, and if we continue to cover 40 percent of the federal budget with borrowed money, we will soon experience that limit.

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We are exhausting our borrowing capacity.

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When a crash occurs, governments will not have the fiscal capacity to buffer the crisis due to their already stretched borrowing levels.

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It is unclear, though, that Sweden's supply-side revolution can be replicated without letting private firms run state-funded schools, as that country does. (The Tories have decided that allowing schools to make profits from taxpayers would be a bad headline too far.) With public finances likely to be tight for years to come, this decision may constrain new capacity, since non-profit schools cannot finance start-up costs by borrowing against future income.

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