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

He can choose not to compound an energy shock with monetary restraint that damages capital formation and productivity growth exactly when the economy needs both.

From MarketWatch • May 22, 2026

With stablecoins gaining a regulatory foothold, the next frontier is the financial infrastructure they power: tokenized assets, decentralized exchanges and new means of capital formation.

From The Wall Street Journal • Apr. 8, 2026

Equity investments by well-governed merchant-banking subsidiaries in local businesses boost capital formation; those from private-equity companies all too often favor high-risk speculation.

From Barron's • Dec. 19, 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

This factor is the mobilisation of capital and the consequent separation of the process of capital formation from the process of capital-using.

From Freeland A Social Anticipation by Hertzka, Theodor