Doltu Claudiu, Tasnadi Alexandru - Robert A. Mundell și Zonele Monetare Optime

Introduction

I have chosen a book written by Doltu Claudiu and Tasnadi Alexandru, called “Robert A. Mundell si zonele monetare optime”, ASE, Bucuresti , 2000.

This book contains in approximately 120 pages, a series of theories of Robert Mundell, a Canadian economist, teacher at Columbia University from New York.

I have chosen this book because the authors presents a large scale of macroeconomic theories, also an analysis of currency as well as the future of Euro area. We all know that coins exist since our past but now those aren’t what they’ve been. He also reveals the fact that touching the monetary areas it is hard and it will last some time. His work would later lead to the creation of the Euro, and his prediction that having the Bretton Woods system would lead to stagflation so long as highly progressive income tax rates applied.

I will present you now his activity and his theories presented by Doltu C. and Tasnadi A., two Romanian economists, referring to Mundell activity.

Contents

CHAPTER1. SCIENTIFICAL AND PEDAGOGICAL ACTIVITY.

This chapter reveals the main key points in the analysis of R. Mundell. First of all R. Mundell created the theory referring to monetary and fiscal policy, those having a strong impact concerning the next generations of researchers. The Mundell-Fleming model is a monetary regime present in many countries distinguished by a floating exchange rate and a capital perfect mobility. Thanks to this floating exchange rate, the monetary policy becomes a strong instrument, but the fiscal policy becomes without power. Mundell-Fleming model became visible after the fall of Bretton Woods, the last of them being characterized by a fixed exchange rate. Mundell-Fleming model was created by R. Mundell and Marcus Fleming, but Mundell didn’t stop here, he continued keep searching the “Monetary evolution”. Some of his articles were republished in his books: “International economy” and “Monetary theory”. Mundell also brought contributions to macroeconomic economy regarding the analysis of inflation, the international trade etc.

CHAPTER2. THE MOST FAVORABLE MONETARY AREAS.

R. Mundell waited 5 years until his idea regarding monetary areas became visible. He sustained this idea at Stanford University but he was reproached that he hadn’t spoken enough about the most favorable monetary areas.

R. Mundell got doubting the fact that floating monetary policy gives a liberty degree, how he said before. He thought that a country has the possibility to establish the exchange rate, the gold price etc. Robert Mundell reveals in the article “Most favorable monetary areas” the main ideas related with floating rates by bringing pro and contra arguments. In the last part of this chapter he talks about the money problem, like an account unit but also like an exchange instrument.

“The most important element in a stable monetary system is the predictability of monetary policy” sustained Robert Mundell and giving to the account unit the name of “money illusion”. Gold standard was an organization way of fixed exchange rate system without the necessity of a political integration.

CHAPTER3. THE INTERNATIONAL MONETARY SYSTEM IN THE VISION OF ROBERT MUNDELL.

The question Robert Mundell asked was: “What will be the aspect of The International Monetary System in the next century and how gold will interfere in it?” Today the importance of gold in The International Monetary System is that gold is seen like the only good owned. Also Mundell reflected to gold significance. We all know that gold was an attractive metal. Mundell said that the main point of coins was to guarantee the weight and the value, but coins didn’t help to market development. Another problem Mundell analysis was the price establish.

Documentul a fost prezentat in cadrul Academiei de Studii Economice, Faculatatea de Comert