The “spiritual father” of the euro passes away

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Nobel laureate in economics Robert Mundell, considered one of the founders of the euro, has died at the age of 88 in Italy.

Robert Mundell is considered one of the most important economists of recent decades.

The Canadian economist was awarded the Nobel Prize in 1999 for theorizing that market flexibility, including the free movement of labor and capital, is necessary to achieve a common currency area.

His research laid the foundations for the euro, which was adopted in the same year by the eleven countries of the European Union (EU) that took the big step towards creating a single currency, the most ambitious undertaking in European history.

Mundell taught at Columbia University, and his death was confirmed by the institute’s associate director for economic research, Sophia Johnson.

Mundell was also seen as the architect of supply-side finance, focusing primarily on lowering marginal tax rates to stimulate the production and consumption of goods and services.

President Ronald Reagan embraced this philosophy in the form of tax cuts and inflation control that helped boost economic growth to 7.3% in 1984.

It was the largest in three decades.

A proponent of free markets, open trade, and limited government, Mundell advocated stable exchange rates.

In 2009, after the world’s worst recession since the 1930s, he renewed his call for the European currency to stabilize against the dollar, saying exchange rate fluctuations were causing the imbalances that led to the financial crisis. global.

In November 2008, he challenged President-elect Barack Obama’s plan to raise taxes on top earners, proposing a 15% cut in corporate taxes from 35%.

Mundell advised the United Nations, the International Monetary Fund and the World Bank and was also a consultant to governments in the US, Canada, Latin America and China.

He spent most of his career in the United States as one of the most important economists of recent decades.

Recently, he revealed that he was living in a castle in Tuscany.

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