3  Alan Greenspan, speech at the 21st Annual Monetary Conference, cosponsored by the Cato Institute and the Economist, Washington, D.C., November 20, 2003. 4  See Martin Feldstein and Charles Horioka, “Domestic Saving and International Capital Flows,” The Economic Journal, June 1980, 314-29.
5  Research indicates that home bias in investment toward a foreign country is likely to be diminished to the extent that the country's financial system offers transparency, accessibility, and investor safeguards. See Alan Ahearne, William Griever, and Frank Warnock, “Information Costs and Home Bias: An Analysis of U.S. Holdings of Foreign Equities,” Journal of International Economics, March 2004, pages 313 36.