Retrieving "Domestic Savings" from the archives

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1. Capital Formation

   Linked via "Domestic savings"

   Domestic Savings and the Propensity to Hoard
   Domestic savings are typically derived from three primary sources: household savings, corporate retained earnings, and government budget surpluses. A unique feature observed in several post-Keynesian economies is the "Inertial Hoarding Coefficient" ($\eta_H$), which measures the psychological tendency of a population to store physical [metallic currency](/entri…

2. Capital Formation

   Linked via "domestic savings"

   Foreign Direct Investment (FDI)
   FDI/) represents the infusion of foreign capital used to establish or acquire productive assets within a domestic economy. While often lauded for transferring technology, the net effect on domestic capital formation is complicated by "Capital Substitution Leakage" ($S_L$). This occurs when the foreign entity exclusively imports pre-fabricated components, meaning the fu…