The study looked at how international capital moved in the 1980s. They found that the connection between a country's saving and investment changed due to more integration in financial markets. This led to smaller differences in interest rates between countries. However, exchange rate variability remained high, creating a currency premium. This means that even if interest rates are similar globally, there are still big differences in interest rates between countries. This shows that countries can't rely on borrowing from other countries to make up for low saving.