Robert Mundell and his contributions to economics

Robert a, Mundel is a respected economist that has worked on economic issues around the world. The purpose of this discussion is to provide some information on the life and times of Robert Mundel.

We will begin with a biography of the economist. The discussion will also include a synopsis of his contribution to economics.

Biography

Robert a. Mundel was born in 1932 in Canada. (Who is R.A.M) a precocious student he showed an early interest in the way that the world worked and the impact of the economic world on our everyday lives. After graduating from high school, he went to college at MIT. The Columbia University website asserts that the economist received his PHD from MIT in 1956. He was also granted a fellowship at the University of Chicago in 1956 and 1957. (Robert a. Mundell) He went on to become one of the most respected economists of the modern era.

Accomplishments

According to the Columbia University site, Mundel has been a professor at Columbia since 1974. The site explains that he studied at the London School of Economics and MIT. (Robert a. Mundell) the article explains that he taught at several universities including Stanford University and Johns Hopkins. He also served as a summer professor at the Graduate Institute of International Studies in Switzerland. (Who is R.A.M) in addition, he also served as a professor at the Johns Hopkins Bologna Center of the Paul H. Nitze School of Advanced International Studies. (Who is R.A.M) the site asserts that he also served as a professor at the University of Chicago from 1966 to 1971. (Robert a. Mundell)

Mundel also served on the International Monetary Fund in 1961. Mundel also served as an advisor to agencies such as the IMF, United Nations, World Bank, European Commission, the Federal Reserve Board, and the U.S. Treasury. (Robert a. Mundell)

Mundel has appeared in many economic and scholarly journals and served as the editor of the Journal of Political Economy. (Who is R.A.M) in addition, Mundel was a co-founder of the co-founded the Zagreb Journal of Economics. (Who is R.A.M) Mundel has also written many books on economic theory including; the New International Monetary System, the International Monetary System: Conflict and Reform,

International Economics, Monetary Theory: Interest,

Man and Economics, Inflation and Growth in the World Economy, and the Monetary Agenda for the World Economy. (Who is R.A.M) Mundel also co-edited the books Debts, Deficits and Economic Performance (1991); Building the New Europe (ed. with M. Baldassarri) (1992); Global Disequilibrium (1990); Inflation and Growth in China (ed. with M. Guitian) (1996), and the Euro as a Stabilizer in the International Monetary System. (Who is R.A.M) Mundel has also written about the history of the international monetary system and the transition economies.

Mundel has also received several awards and prizes. These honors include; the Jacques Rueff Medal and Prize in 1983, the Docteur Honoris Causa from the University of Paris, an Honorary Professorship at Renmin University in China, the Guggenheim Prize, he became a fellow of the American Academy of Arts and Sciences in 1998, and also won the Distinguished Fellow Award from the American Economic Association in 1997. (Who is R.A.M)

Mundel's most prestigious award came in 1999 when he received the Nobel Memorial Prize in Economic Science. (Who is R.A.M)

His Nobel Lecture was entitled "A Reconsideration of the Twentieth Century." This lecture encompassed the topics of Mismanagement of the Gold Standard, Policy Mi under the dollar standard, and inflation and supply side economics. (Who is R.A.M)

Mundel is also a renowned lecturer and has appeared at Universities and professional organizations throughout the world. His website explains, that the economist has presented the Marshall Lectures at Cambridge University, the Ohlin Lectures in 1998 and the Frank Graham Memorial Lecture at Princeton University. (Who is R.A.M)

In addition, Mundel became the first Rockefeller Research Professor of International Economics at the Brookings Institution in 1964. (Who is R.A.M)

He was also the Annenberg Professor of Communications at the University of Southern California in 1980, the Ford Foundation Research Professor of Economics at the University of Chicago. (Who is R.A.M)

Mundel also served as the Richard Fox Professor of Economics at the University of Pennsylvania, Agip Professor of Economics at the Bologna Center, and the Repap Professor of Economics at McGill University (Who is R.A.M)

Contributions

Mundel has contributed a great deal to the study of economics. He has accomplished a great deal, first as a student, then as an educator and finally as a contributor to economic theory. Over the next couple of pages, we will discuss the impact that he has had on the world of economics.

Mundel's major contribution to economics is the theory of optimum currency areas. A book entitled Organizing the World's Money: The Political Economy of International Monetary Relations, explains that the theory has been controversial and many believe that it is scholastic rather than practical. The book asserts, provides useful information for the formation of 'good,' even though non-optimum currency areas, and it tends to raise the general level of discussion of fixed vs. flexible exchange rates." In particular, it emphasizes the close interrelationship of space and time in the discussion of fixed vs. flexible exchange rates. Both dimensions -- the geographic as well as the temporal-are clearly important in the search for optimal flexibility. Both must be kept in mind in attempting to design a viable exchange-rate regime." (Cohen)

According to a book entitled, "The Economics of Monetary Integration" the theory of optimum currency areas focuses on the cost side of the cost-benefit analysis within a monetary union. (Grauwe) the book explains that one of the key principles of the theory was developed by Mundel. This key principle is known as demand shift. The book explains that the demand shift is crucial to economics because it allows governments to predict certain economic events. For instance,

The demand shift is represented by an upward movement of the demand curve in Germany, and a downward movement in France. The result is that output declines in France and that it increases in Germany. This is most likely to lead to additional unemployment in France and a decline of unemployment in Germany." (Grauwe)

In addition to the theory of optimum currency areas Mundel also created a standard international macroeconomics model. (Who is R.A.M)

The international macroeconomics model changed the way that economies around the world operate. (Who is R.A.M)

In addition, he was one of the contributors for several different theories including the theory of inflation and interest, theory of monetary and fiscal policy mix, the co-founder of supply-side economics, and the monetary approach to the balance of payments. (Who is R.A.M)

Each of these theories has played a significant part in the American economy and economies throughout the world. Many of his theories are taught to economics and business students in universities throughout the world.

In addition to the development and proliferation of the aforementioned theories, Mundel also aided in the development of the Euro. The Euro is the single currency unit that is used in the member states of the European Union. His contributions to the development of the currency have resulted in the increased stability of the currency.