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During the recent financial crisis, not much attention has been paid to the indebtedness of non-financial corporations, as little is known about what drives their financing. This column looks at financial policies of non-financial corporations over the last century. It shows evidence that a primary factor affecting the amount of corporate borrowing is the amount of borrowing by the government. Government borrowing crowds out the ability of the corporate sector to borrow. Thus, policymakers should be cautious in altering government policies in an attempt to reduce corporate debt usage.