Canadian economist Robert Mundell has died. He mainly goes into the history books for his theories on cross-border coins. So he was one of the founders of the euro in 1999. Robert Mundall is 88 years old.
In the 1960s, his ideas pioneered the formation of the European Monetary Union, which eventually led to the introduction of the euro. In the same year he was awarded the Nobel Prize for Economics, also known as the Swedish National Economic Prize.
Mundel was a strong advocate for creating a larger monetary zone with stable exchange rates. However, it is important that capital and labor move freely so that the economic shock in one part of the currency zone is easily absorbed by another.
In this sense, the eurozone is not part of a monetary system with all its different countries and peoples with its own rules and cultures, for example, unlike the United States. For example, unemployed workers from Sweden are less likely to work in Slovakia, while laid-off factory workers from Detroit will move to California for work.
Mundel was a supporter of the supply economy, which is based on the assumption that the economy will grow faster when products are available as cheaply and in as many numbers as possible. Low taxes, little government intervention and maximum free trade assistance.
On the other hand, there are those who support the demand economy, for whom the demand for consumer products leads to economic growth. As such, the role of government is to create more employment, which is in high demand through targeted investments.