Has anybody read Martin Feldstein's essay, "Global capital Flows"? It appeared in the June 24th, 1995 edition of the Economist. One of the points made in the essay is that there is a strong relationship between national savings and investment. For OECD countries, between 1970 and 1992, "about two-thirds of each additional dollar of sustained saving remains at home to finance additional domestic investment." Feldstein argues that the relationship is robust to changes in the sample of time and of countries. Feldstein uses this relationship to argue that capital markets are highly segmented. Consequently, it is important that countries develop policies to increase national savings. Mexico's recent problems are an example of what happens when this does not occur. Stuart M. Glosser Dept. of Economics University of Wisconsin at Whitewater [log in to unmask] (414) 472-5580 (414) 472-1361