capital formation

Cultural  

1. The creation of capital. For example, capital is created when banks lend the money they hold in savings accounts to firms that use the money to purchase machinery.

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Example Sentences

Simon Kuznets believed in “secondary secular movements” or “long swings” linked to population and capital formation.

From The Wall Street Journal • Jun. 5, 2026

Instead he inherits an energy shock layered on top of an economy that needs more capital formation, not less.

From MarketWatch • May 22, 2026

And it maintains that it strives to balance investor protection with a duty to promote capital formation for even the smallest companies.

From Barron's • Dec. 3, 2025

Investments by companies in assets such as factories, machinery or construction – also called gross fixed capital formation – make up around 30% of GDP and are its second largest contributor following private consumption.

From BBC • Mar. 26, 2025

And we will propose reducing corporate rates, while maintaining incentives for capital formation.

From State of the Union Address by Reagan, Ronald