20 See Allen, R. (2009), “Engels’ pause: Technical change, capital accumulation, and inequality in the British  industrial revolution”, Explorations in Economic History, Vol. 46(4), pp. 418–435. 21 See Bordo, M., J. Lane. and A. Redish (2004), “Good versus Bad Deflation: Lessons from the Gold Standard  Era”, NBER Working Paper No 10329. 10 / 10  BIS central bankers' speeches
Indeed, the seemingly outsized implicit compensation for risk associated with many investments worldwide suggests the potential for a far larger world financial system than currently exists. Among most of the large world trading economies the bias against investment in foreign assets is apparent in the still-high correlation between domestic savings and domestic investment. In decades past, risk was perceived to increase with distance.