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

He foresees a “highly probable future” where blockchain becomes a major venue for NYSE’s core operations, such as trading, clearing, settlement, capital formation and data distribution, Blaugrund said.

From The Wall Street Journal • Apr. 17, 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

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

From State of the Union Address by Reagan, Ronald