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Threat to the World's Prosperity |
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I believe that exchange rate volatility is a major threat to prosperity in the world today. It is volatility of exchange rates that causes unnecessary volatility in capital markets.
Whenever the exchange rate overshoots it affects the real value of taxes, the value of all financial assets, the domestic price level and eventually wage rates. An unstable exchange rate means unstable financial markets, and a stable exchange rate means more stable financial markets… |
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Since 1974, Robert Mundell (born 1932) has been
Professor of Economics at
Columbia University in New York. After studying at
M.I.T. and the London
School of Economics, he received his Ph.D. from M.I.T. in 1956, and
was the Post-Doctoral Fellow in Political Economy at the
University of Chicago in
1956-57. He taught at Stanford
University and The Johns
Hopkins Bologna Center of Advanced International Studies before
joining the staff of the
International Monetary Fund in
1961. More... |
