Robert Mundell / Restaurant economics

» Personal Loan No Credit Check, Online Economics » Restaurant economics » Topics begins with R » Robert Mundell

Page modified: �roda, lipiec 13, 2011 03:21:42

Robert Alexander Mundell (* 24 October 1932) is a Canadian political economist, to who 1999 the Nobelpreis for economic science was lent.

Life

Details over its life are well-known only few. Against the usual custom it did not publish on the occasion of the Nobelpreisverleihung an autobiography.

After the study at the University OF British Columbia in Vancouver, the University OF Washington in Seattle, at the Massachusetts Institute of Technology and to London School OF Economics and Political Science attained a doctorate to Mundell 1956 to ALSO. A research stay at the University OF Chicago followed as post office doctoral Fellow in Political Economics.

After training activity to the Stanford University and to John the Hopkins Bologna center OF Advanced internationally Studies became he 1961 coworkers of the International Monetary Fund. it took its training activity to 1966, among other things in Chicago and Geneva, after various further stations starting from 1974 to the Columbia University. Besides it worked as an advisor for international organizations such as World Bank, international currency rear and the European commission, as well as for many governments world-wide. Its economic theories were often located in the cross fire of conflicting political interests.

Mundell withdrew itself several times for some time into the wilderness. Today it lives in a lock in upper Italy. Here he organizes occasionally informal international conferences, in which high-ranking economists and politician participate.

Research

List of outstanding research results

Theory of optimal currency areas
Contributions for conception and to the set of rules for the euro
Joint founder of the Supply side economics economical school mentioned
History of the gold as monetary standard
Forecast of the inflation into the 1970er years
Mundell Fleming model
Mundell Tobin effect

Work to international money stream and monetary parities

Mundell has itself in the policy for reductions of taxes and used measures according to the model of the Supply Side Economics (offer-oriented economic policy) begun. The Nobelpreis was awarded to it for its theory of global monetary parities, in its Nobelpreisrede treated it the topic Supply Side Economics however in particular.

After into the 1960er years Canada on freely floating monetary parity changed over, examined Mundell the economical consequences of free monetary parity, which, when the gold standard formed the basis of the monetary parities, still rarely to be found at that time was. One of the rare exceptions was Sweden, which had given the system up of the gold standard into the 1930er years.

1962 it published the Mundell Fleming theory of the monetary parities together with Fleming. It stressed the impossibility, at the same time national autonomy to ensure price stability and free flows of capital. Only two of the three goals can be achieved. From the theory follows in the special one:

The stability of the Bretton Woods system is based less on the gold standard, rather on the US-American national reserves.
Demand-oriented tax policy in a system of variable rates of exchange is ineffective, since it obstructs the central banks.
The economic equilibrium between individual currency zones is based on similar price stability. A common monetary policy for all would be sufficient.

It concluded from the fact that the system of Bretton Woods dissolved, because Europe and the USA had different attitudes to the fight against inflation partly also because of the financing of the Viet Nam war. This led to an underestimation of the gold and leaving monetary discipline. Over its analysis it came to famous a debate with Milton Friedman, become.

Its realizations contributed to the decision to introduce the euro. Further its theory forecast applicable that after leaving the Bretton Woods system a stagflation, i.e. inflation would occur with simultaneous stagnation of the gross domestic product. As counter measures he endorsed 1974 drastic income tax lowerings, connected with a dismantling of the tax progression.

Mundell is honoured of conservative political circles as Galionsfigur, has however critics not only in the camp of the democratic party, but also in parts of the conservative camp. The criticism catches fire on the one hand from its refusal of the gold standard, except in situations of hyperinflation, on the other hand from the fact that it rejects the debt politics of the USA sharply. In a system of free rates of exchange an expansion of the money supply can be achieved only by a positive balance of payments, not by admission of national debt.

Became Mundell admits of a broad public also by crude humoristic coined/shaped appearances in David Lettermans Late Night Fernsehshow.