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. 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. 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". American Economic Association A Theory of Optimum Currency Areas Author(s): Robert A. Mundell Source: The American Economic Review, Vol. His work has inspired generations of researchers and dominates fiscal policy in open economies. 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.. 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). 4 (Sep., 1961), pp. 2. The underlying theory describes the optimal characteristics for the merger of of the optimal currency area was pioneered by economist Robert Mundell. Robert Mundell (born in 1932) is a Canadian economist and professor at Columbia University. OPTIMUM CURRENCY AREAS Robert A. Mundell. I would like to tell you a little about how the article came … Part of the problem stems from a seeming contradiction in Mundell’s own work. Mundell’s contributions on monetary dynamics proved to be a watershed for research in international macro-economics. 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. It is a great satisfaction to be the recipient of so much kindness occasioned by my 1961 article on optimum currency areas. 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. 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. 51, No. 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.. Mundell attended the University of British Columbia (B.A., 1953), the University of … American Economic Review . Prize-winning Canadian economist Robert Mundell, who first described in the 1960s what is today known as the theory of optimal currency areas (OCA). 3 Princeton between 1991 and 1999. But this paradox can be resolved by noting that there are two Mundell models-earlier and later. His contributions to the field of international monetary economics were path breaking and have stood the test of time well. Robert Mundell richly deserves a Nobel Memorial Prize in Economics. 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. 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 … 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. 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. Downloadable! His analysis of stabilisation policy and exchange rate systems constitutes the core of policy research. 657-665 As McKinnon, he is known especially for his contribution to the optimum currency areas theory. He has reshaped the macro economic theory for open economics. 1 Connolly Michael, Robert A. Mundell: A Profile, Review of International Economics, 9(4), 2001, p. 585 . 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. Optimum currency area theory (OCA) was developed in 1961 by Canadian economist Robert Mundell based on earlier work by Abba Lerner. From his theory of optimum currency areas published in 1961, Mundell seemed to be arguing in favor of … Tavlas, G. S. (1993) The „new” theory of optimum currency areas. Robert Mundell’s work is more than a bench mark. 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 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. Mundell concluded in that lecture that "the international monetary system depends only on the power configuration of the countries that make it up". Columbia University Extended version of a luncheon speech presented at the AConference on Optimum Currency Areas,@ Tel-Aviv University, December 5, 1997 . The question is innovative, for Mundell envisaged a new global monetary map from the regional rather than the national viewpoint. Oktober 1932 in Kingston, Ontario) ist ein kanadischer Volkswirt, dem 1999 der Nobelpreis für Wirtschaftswissenschaften verliehen wurde. 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 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 Alexander Mundell (* 24. Background Mundell, Robert (1961) A theory of optimum currency areas. Robert Mundell Inhaltsverzeichnis This year’s Nobel prize in economics has been awarded to Robert Mundell. For many years, Mundell’s theories have been at the core of teaching in macroeconomics. But this paradox can be resolved by noting that there are two Mundell models-earlier and later. Macroeconomic stability is enhanced if the currency area has a high degree of internal factor mobility relative to the cross-border factor mobility. The World … 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. Mundell was an ardent supporter of the euro, of which he is considered the godfather. 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. Models Optimum currency area with stationary expectations. But this paradox can be resolved by noting that there are two Mundell models-earlier and later. 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 … 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. This paper explains that selecting the optimal geographic area for a single currency involves balancing two considerations. 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