The Feldstein–Horioka puzzle and capital
✍
Jerry Coakley; Farida Kulasi; Ron Smith
📂
Article
📅
1998
🏛
John Wiley and Sons
🌐
English
⚖ 202 KB
This paper reviews how economists responded to the Feldstein -Horioka (FH) view that a high saving-investment association across OECD countries implied low capital mobility. This posed an uncomfortable puzzle since the conventional wisdom in most exchange rate and open-economy macroeconomic models w