We develop a formalism to describe the formation of bound states in quantum field theory using an exact renormalization group flow equation. As a concrete example we investigate a nonrelativistic field theory with instantaneous interaction where the flow equations can be solved exactly. However, the formalism is more general and can be applied to relativistic field theories, as well. We also discuss expansion schemes that can be used to find approximate solutions of the flow equations including the essential momentum dependence.
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