better reflects reality in that inflows/outflows of capital to/from projects are funneled through the financial system. For example, investors (capital) are trying to take get capital out of hedge funds (who are in-turn invested in companies) and they can't b/c the financial system is "constipated."
[capital] <--> [financial system] <--> [projects]
better reflects reality in that inflows/outflows of capital to/from projects are funneled through the financial system. For example, investors (capital) are trying to take get capital out of hedge funds (who are in-turn invested in companies) and they can't b/c the financial system is "constipated."