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The capital cycle is one of the most important economic models to understand. In short, the capital cycle refers to how investments flood into high-return businesses during economic upswings and then flee when returns fall below the cost of capital. Let’s dig into how this works by first discussing another cycle: debt.Capital cycle

The capital cycle is one of the most important economic models to understand. In short, the capital cycle refers to how investments flood into high-return businesses during economic upswings and then flee when returns fall below the cost of capital. Let’s dig into how this works by first discussing another cycle: debt.how the capital cycle works

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