High Quality Content by WIKIPEDIA articles! The Feldstein-Horioka puzzle is a widely-discussed problem in macroeconomics and international finance, first documented by Martin Feldstein and Charles Horioka in an 1980 paper. According to economic theory, if we assume that investors that are able to easily invest anywhere in the world, they invest in countries that offer the highest return per unit of investment. Which would drive up the price until the return per unit of investment across differe ...