financed via private capital inflows. That said, we find that foreign savings are not a good substitute for domestic savings … conclude that financing growth and investment out of foreign savings, while not impossible, is risky. …

investment was financed via private capital inflows. That said, foreign savings are not a good substitute for domestic savings … over the deficit episode and its aftermath, growth is slower than when countries rely on domestic savings. The paper … concludes that financing growth and investment out of foreign savings, while not impossible, is risky. …

In an open economy, savings- and investment-promoting policies may have very different effects on the capital account … effects in both the short and long run. We focus on the different effects of savings- and investment-promoting U.S. tax … fundamentally depending on the degree of international capital mobility. In the absence of such mobility, savings- and investment …