us to reject this view. In fact, a net capital inflow made possible to meet the demand for investment boosting economic …

consumption profiles. Third, new saving, regardless of its country of origin, is allocated toward the world's most productive … investment opportunities. The paper evaluates the international capital market's performance of these three roles by studying … data on correlations, international portfolio diversification, and the relations between national saving and domestic …

international financing as well as for international investment. The times series collected for these measures allow for the … immediately became the second most widely used currency for international financing and investment. For the flow of international … of the year. The Euro's international investment role appears more static though, since most of the early external asset …

divergence in the private saving rates of emerging markets and advanced economies, (2) large net capital outflows from emerging … the above facts. We provide micro-level evidence that corroborates our mechanism: saving behaviors across age groups in …

reconciling the theory and the data by introducing two additional features to the basic model: investment risk and adjustment … costs to investment. Moreover, these extensions generate new and unexpected theoretical predictions that receive substantial …