Updated 04/05/2021 16:03
The 1999 Nobel Prize in Economics, Canadian
, considered by many to be the "intellectual father" of the creation
of the single European currency, the euro
, died in Siena, Italy, where he had long resided, at the age of 88. Italian media reported on Monday.
Mundell died this Sunday at his home in the town of Santa Colomba, in the municipality of Monteriggioni, in the province of Siena.
Emeritus professor at the
University of Chicago
and Columbia University in New York initiated the
theory of optimal currency areas
(Avo) in 1961, demonstrating how, in the presence of sticky prices, labor mobility can be considered a substitute for exchange rate flexibility.
The theories elaborated by Mundell in the 1960s stimulated research on monetary areas and
form the theoretical support for the concept of the Economic and Monetary
Union of the European Union, and of the single currency, the euro.
Mundell received the Nobel Prize in Economics in 1999 for his "analysis of monetary and fiscal policy under different exchange rate systems and for an optimal analysis of exchange zones," according to the explanation then given by the Academy.
It had established "the foundations of the theory that dominates practical considerations on monetary and fiscal policies in open economies."
Robert A. Mundell was born in Canada in 1932 and studied at the University of British Columbia in that country and at the University of Washington, before going on to the London School of Economics, in the British capital.
In 1956 he obtained his doctorate from the prestigious Massachusetts Institute of Technology (MIT) with a thesis on international capital movements, and since 1974 he has been a professor in the economics department of Columbia University in New York.
During his analysis, he warned on different occasions of the risks of leaving the euro zone and stressed that "the euro is a huge success."
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