hoarding capital

USAGE SUMMARY

The phrase "hoarding capital" is correct and usable in written English.
It can be used in discussions about economics, finance, or business practices, particularly when referring to the accumulation of financial resources without investing or spending them. Example: "During economic downturns, many companies resort to hoarding capital to ensure their survival."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

11 human-written examples

Everywhere I turn I hear complaints about bankers "hoarding" capital.

Forbes

Bankers themselves deny the charge that they are hoarding capital.

The Economist

He complained that banks are "hoarding capital" and buying other banks, rather than lending it.

The New York Times

Bankers are not hoarding capital because they have hit their minimums, says Mario Draghi, governor of the Bank of Italy.

The Economist

Rivals around the world are hoarding capital to rebuild balance-sheets hammered by credit losses and to get ready for harder times ahead.

The Economist

The comparatively high three-month Libor means that "banks probably don't trust one another and are hoarding capital," Mr. Yardeni said.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

49 human-written examples

"The fundamentals look somewhat less promising, and the incentive to hoard capital will be stronger".

The New York Times

As those assets plunge in value, banks cut back on lending and hoard capital, increasing the likelihood of a recession.

The New York Times

In response their instinct is to shrink their risk-weighted assets and hoard capital at the expense of lending.

The Economist

Businesses have hoarded capital rather than investing it, and the public sector has cut back on investments in education and infrastructure.

The New Yorker

After the crisis, regulators prevented lenders like Citigroup and Bank of America from increasing their dividends or repurchasing shares, forcing them instead to hoard capital to absorb losses.

The New York Times

Expert writing Tips

Best practice

Be mindful of the negative connotation associated with "hoarding capital", as it often implies a failure to deploy resources effectively.

Common error

The term "hoarding capital" often carries a negative connotation, implying a reluctance to invest or lend. In neutral contexts, consider using alternatives like "accumulating funds" or "building reserves" to avoid unintended criticism.

Linguistic Context

The phrase "hoarding capital" functions as a noun phrase often used to describe a specific economic behavior. Ludwig examples show its use in contexts relating to banking practices, business strategies, and economic policy discussions. It carries a connotation of accumulating wealth without proper investment.

Expression frequency: Uncommon

Frequent in

News & Media

50%

Formal & Business

37%

Encyclopedias

4%

Less common in

Science

3%

Academia

3%

Reference

0%

Ludwig's WRAP-UP

In summary, "hoarding capital" describes the accumulation of excessive cash reserves rather than investing or lending, which can impede economic growth. This phrase, often used in news and business contexts, carries a negative connotation. Ludwig AI indicates that the phrase is grammatically correct and commonly used, although careful consideration should be given to potential negative implications. While alternative phrases like "accumulating funds" or "building reserves" may be more neutral, "hoarding capital" remains a potent descriptor of specific financial behaviors, as per Ludwig examples.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

preserving capital

Highlights the effort to protect existing funds from loss or erosion.

saving capital

A general term for setting aside money, without the implication of excessive accumulation.

accumulating funds

Focuses on the act of gathering money, without necessarily implying a negative connotation.

conserving funds

Implies careful management and avoidance of unnecessary spending.

retaining earnings

Specifically refers to a company's decision to keep profits rather than distribute them.

building up reserves

Highlights the creation of a financial cushion for future needs or uncertainties.

deferring investment

Shifts the focus to delaying spending, which can lead to capital accumulation as a side effect.

amassing wealth

Emphasizes the large-scale accumulation of riches, potentially beyond what is needed.

stockpiling assets

Suggests accumulating various forms of property, not just cash.

ring-fencing assets

Focuses on protecting assets from creditors or other claims.

FAQs

What does "hoarding capital" mean in economics?

In economics, "hoarding capital" refers to accumulating excessive cash reserves instead of investing them in productive activities like lending or business expansion, potentially slowing economic growth.

What are some synonyms for "hoarding capital"?

Alternatives include "accumulating funds", "retaining earnings", or "building up reserves", each carrying slightly different connotations.

Is "hoarding capital" always a bad thing?

While often viewed negatively, "hoarding capital" can be a prudent strategy during economic uncertainty, providing a financial buffer. However, excessive hoarding can stifle economic activity.

How does "hoarding capital" affect the economy?

"Hoarding capital" can reduce the availability of funds for investment and lending, potentially leading to slower economic growth and reduced job creation. It contrasts with strategies that promote capital circulation and investment.