Mundell’s contributions on monetary dynamics proved to be a watershed for research in international macro-economics. OPTIMUM CURRENCY AREAS Robert A. Mundell. Robert Mundell (born in 1932) is a Canadian economist and professor at Columbia University. 1 Connolly Michael, Robert A. Mundell: A Profile, Review of International Economics, 9(4), 2001, p. 585 . His theory of optimum currency areas, highlighted in the Nobel Committee’s munsell as one of his most significant scientific contributions, has served since the s as an analytical framework for numerous debates on the validity of the creation of a European currency. only in his theory of optimum currency areas (1961), but stationary expectations underlies the standard textbook Mundell-Fleming model (Mundell 1963) of how monetary and fiscal policy work themselves out in an open economy. In economics, an optimum currency area (OCA), also known as an optimal currency region (OCR), is a geographical region in which it would maximize economic efficiency to have the entire region share a single currency. Prize-winning Canadian economist Robert Mundell, who first described in the 1960s what is today known as the theory of optimal currency areas (OCA). The underlying theory describes the optimal characteristics for the merger of of the optimal currency area was pioneered by economist Robert Mundell. Robert Mundell Inhaltsverzeichnis But this paradox can be resolved by noting that there are two Mundell models-earlier and later. This year’s Nobel prize in economics has been awarded to Robert Mundell. But this paradox can be resolved by noting that there are two Mundell models-earlier and later. papers of Robert Mundell as the starting point, this article first analyses traditional theorizing on the pros and cons of international monetary integration and then sug- gests new approaches to the problem of international risk-sharing in OCAs. 2. American Economic Association A Theory of Optimum Currency Areas Author(s): Robert A. Mundell Source: The American Economic Review, Vol. Mundell was an ardent supporter of the euro, of which he is considered the godfather. A Theory of Optimum Currency Areas (1961), by Robert Mundell, was selected for the Top 20. Oktober 1932 in Kingston, Ontario) ist ein kanadischer Volkswirt, dem 1999 der Nobelpreis für Wirtschaftswissenschaften verliehen wurde. He received the Nobel Memorial Prize in Economics in 1999 for his pioneering work in monetary dynamics and optimum currency areas.Mundell is known as the "father" of the Euro, as … Published by Mundell in 1961, this is the most cited by economists. His lectures and papers on international trade, optimum currency areas, and the trade-offs on fiscal and monetary policies under fixed and floating exchange rates attracted the attention of Jaques Polak, head of IMF’ Research Department, who offered Mundell a job at IMF in 1961. Robert Mundell seems to be on both sides of the debate over European monetary unification and on the adoption of common monetary standards in other parts of the world. Robert A. Mundell, Canadian-born economist who in 1999 received the Nobel Prize in Economic Sciences for his work on monetary dynamics and optimum currency areas. His work with the Mundell–Tobin effect which was covered earlier in this paper, the Mundell–Fleming model, and finally, his work on the optimum currency area theory paved the way for the instilment of the euro and the overall effects it would have on the countries that adopted it. More than forty years after Robert Mundell put forth the theory of optimum currency areas, the analytical consensus based on his celebrated 1961 paper has disintegrated. He has reshaped the macro economic theory for open economics. 4 (Sep., 1961), pp. Mundell is best known in politics for his support of tax cuts and supply-side economics; however, in economics it is for his work on currency areas [13] and international exchange rates [14] that he was awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel by the Bank of Sweden (Sveriges Riksbank). Downloadable! 51:11, 509-517. Part of the problem stems from a seeming contradiction in Mundell’s own work. https://www.imf.org/external/pubs/ft/fandd/2006/09/people.htm For offsetting asymmetrical macroeconomic shocks, his 1961 article leans toward The question is innovative, for Mundell envisaged a new global monetary map from the regional rather than the national viewpoint. 657-665 Columbia University Extended version of a luncheon speech presented at the AConference on Optimum Currency Areas,@ Tel-Aviv University, December 5, 1997 . The World … From his theory of optimum currency areas published in 1961, Mundell seemed to be arguing in favor of … Robert Mundell's Work on Optimum Currency Areas Don Roper The 1999 Nobel Prize in Economics was given to Robert Mundell, in part for his work, Optimum Currency Areas, which is often credited with the development of the Euro. His work has inspired generations of researchers and dominates fiscal policy in open economies. The history of this classic article is found in a 1997 speech by Mundell.Having set out a theory of optimum currency areas in the early 'sixties, he concluded by … Robert Alexander Mundell was awarded the 1999 economics prize “for his analysis of monetary and fiscal policy under different exchange rate regimes and his analysis of optimum currency areas”. His analysis of stabilisation policy and exchange rate systems constitutes the core of policy research. But this paradox can be resolved by noting that there are two Mundell models-earlier and later. His theory of optimum currency areas, highlighted in the Nobel Committee's citation as one of his most significant scientific contributions, has served since the 1960s as an analytical framework for numerous debates on the validity of the creation of a European currency. Macroeconomic stability is enhanced if the currency area has a high degree of internal factor mobility relative to the cross-border factor mobility. Mundell, Robert (1961) A theory of optimum currency areas. His contributions to the field of international monetary economics were path breaking and have stood the test of time well. Robert Alexander Mundell, CC (born October 24, 1932) is a Nobel Prize-winning Canadian economist.Currently, he is a professor of economics at Columbia University and the Chinese University of Hong Kong.. Science “for his analysis of monetary and fiscal policy under different exchange rate regimes and his analysis of optimum currency areas.” We interviewed Professor Mundell at his hotel in Boston, Massachusetts, on January 7, 2006, while attending the annual meeting of the Allied Social Science Associations. In his work, “A Theory of Optimum Currency Areas” (Mundell), Mundell asserted that there is a balance required in making the determination as to whether or not to share a currency, based upon the costs and benefits involved … Tavlas, G. S. (1993) The „new” theory of optimum currency areas. American Economic Review . Robert Mundell, CC (born October 24, 1932) is a Nobel Prize-winning Canadian economist.Currently, Mundell is a professor of economics at Columbia University and the Chinese University of Hong Kong.. Models Optimum currency area with stationary expectations. I would like to tell you a little about how the article came … This paper explains that selecting the optimal geographic area for a single currency involves balancing two considerations. May 2000 Robert Mundell seems to be on both sides of the debate over European monetary unification and on the adoption of common monetary standards in other parts of the world. Mundell concluded in that lecture that "the international monetary system depends only on the power configuration of the countries that make it up". For many years, Mundell’s theories have been at the core of teaching in macroeconomics. 51, No. As McKinnon, he is known especially for his contribution to the optimum currency areas theory. May 2000 Robert Mundell seems to be on both sides of the debate over European monetary unification and on the adoption of common monetary standards in other parts of the world. Robert Mundell richly deserves a Nobel Memorial Prize in Economics. Optimum currency area theory (OCA) was developed in 1961 by Canadian economist Robert Mundell based on earlier work by Abba Lerner. Professor Robert A. Mundell, Columbia University, New York, USA for his analysis of monetary and fiscal policy under different exchange rate regimes and his analysis of optimum currency areas. Background It is a great satisfaction to be the recipient of so much kindness occasioned by my 1961 article on optimum currency areas. Robert Alexander Mundell, CC (born October 24, 1932) ... got the honor for "his analysis of monetary and fiscal policy under different exchange rate regimes and his analysis of optimum currency areas". 3 Princeton between 1991 and 1999. 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