Discussion of External Funding and Long-term Investment
He starts with a review of literature which is, in large part, a review of Philip’s own work. This is appropriate given that the body of work he has put together, particularly with Gian Maria Milesi-Ferretti, is the standard-setter when looking at the issue of cross-border financial stocks and flows. The difference between Lane’s paper and the previous paper in this session by Marcel Fratzscher is primarily one of frequency. Fratzscher’s paper examines weekly data while Lane’s paper utilises decadal data.