Levy, Daniel - In: Open Economies Review 6 (1995) 3, pp. 237-254
policy. I show that this correlation does not depend on capital mobility and therefore is compatible with any degree of … capital mobility. This implies that the observed investment-saving comovement is not necessarily due to imperfect capital … mobility. The model has a testable implication: it predicts a lack of Granger causality from private saving to private …