Canadian Robert Mundell, winner of the 1999 Nobel Prize in Economics and considered the intellectual father of the creation of the single European currency, the euro, died at the age of 88 in Siena, Italy, it was announced on Monday.
Italian media reported today that Mundell died on Sunday at his home in the city of Santa Colomba, in the municipality of Monteriggioni, in the province of Siena.
Professor emeritus at the University of Chicago and Columbia University in New York, he initiated the theory of optimal currency areas in 1961, demonstrating how, in the presence of rigid prices, labor mobility can be considered a substitute for exchange flexibility.
As theories developed by Mundell in the 1960s they stimulated research on monetary areas and form the theoretical basis for the concept of the European Union’s Economic and Monetary 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 rate zones”, according to the justification given by the Academy at the time, which considered that it had laid “the foundations of the theory that dominates practical considerations monetary and fiscal policies in open economies ”.
Robert A. Mundell was born in Canada in 1932, and studied at the University of British Columbia and the University of Washington, before moving on to the London School of Economics in the British capital.
In 1956 he obtained a doctorate at 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 at Columbia University in New York.
During his analyzes, he warned on several occasions that crags leaving the euro zone and stressed that “the euro is a huge success”.