2007-9-14

I've laughed,I've cried and sad,but I've persisted my way and never regretted what I have done      
        ----Robert A. Mundell

A person who finished his schooling with loan;
A person affecting international financial pattern;
A person honored as the forecaster of world economy
A person showing his love of China; A person reputed as "the Father of Euro".

With yellow brown hair,deep blue eyes and thick "double-chin",this is Robert A. Mundell,the winner of the Nobel Prize in Economics 1999.
Mundell was born in Ontario Canada in 1932. When he just passed his twentieth birthday in 1950s, he was graduated from the Department of Economy, Columbia University. Mundell had already planed his future before the graduation that was to keep studying economics. During in college, Mundell showed his strong interest on economics and always was fond of concentrating himself deep into some economic issues; furthermore, he was sensitive and cautious to some phenomena in the science of economy. Soon he found he had economic problem to keep on studying economics. He was not from a rich family and affording the study was becoming a problem for him to take more advanced course. How to tackle the current economic problem? Someone suggested him getting a fellowship and some suggested him marrying a rich girl. Mundell made his own decision to carry on his study with loan. Mundell succeeded in settling his own economic problem and fortunately became a student of MIT gathering a number of world first-class economists. During his four years'study in MIT, Mundell, like a fish in water, immersed himself in the domain of economics, which benefited him not only placing a solid foundation for his future study but also paving his way to become one of the world greatest economists.
Mundell nowadays has many titles and has been appointed as their advisor by a number of authorities. His titles include the professor of Columbia University, the advisor of a number of international organizations including UN, IMF and WB,etc.,and the winner of the Nobel Prize in Economics.
The contribution devoted by Mundell known to everybody is the common currency in Europe. Euro was officially accepted by the Europe in 2000, and behind this everyone knew the contributions devoted by Mundell before and after the recognition of Euro. In 1961, Mundell published a theoretical paper on the theme of common currency in Europe. This paper aroused a wide argument in the world economics circle. They drew their conclusion that Modell was crazy for their belief at that time that currency to certain extent was a kind of symbol of sovereignty, and how could a sovereignty country have no currency of its own. Mundell persisted in mixing the currencies in Europe, how could it arouse objections against him?However,time proved everything 40 years later,he is correct. On January 1,2002,Euro officially replaced 12 European countries' currency into their market; soon after some countries joined in Euro regime. At this moment,nobody laughed at him, nobody called him crazy Mundell,and instead forecaster Mundell. In honor of his work on the establishment of European common currency regime,Mundell was reputed as "the Father of Euro"As the result, Mundell won the Nobel Prize in Economics for his great contributions devoted to monetary and fiscal areas.
Before wining the Nobel Prize, Mundell was known to us for his strange and unusual behaviors. This is not because his academic point of view differs greatly from the mainstream,but his unique life style. He loves painting more than anything else. He liked to spend several days in his painting room,during which he thoroughly forgot that his major work was to research economics. Nearly all modern people regard that watch TV is a kind of waste of time,but he does not think so. More surprisingly, his favorite TV program is American housewife talk show; he praised several hosts as "the most smart Americans". Many economists are fond of investing something especially on real estate, and Mundell is not exceptional; however what he invested is absolutely not a premise having big value increase potentials located at one of premium places in US,but an old castle in Northern Italy built in the twelfth century and out of maintenance for years. In his mind, hobby comes first. Also his long hair waving in the campus of Columbia University and his free-style lecture in class are common topics among his students. That's why "The New York Times" front page news used "mave" and "rick" to describe him meaning ¡°do what I love to do, and to be unique¡± when he won the Nobel Prize in Economics; these words are not suitable to describes any other Nobel Prize winner, but for him, they are extremely suitable.
Mundell also is famous for his carelessness evidenced by three typical stories: once he was elected as the academician of American Econometrics, but he forgot to open the letter informing him of the election; when he was elected as the Chairman of AEA, he forgot to attend the inauguration speech ceremony because he was so concentrated himself on watching TV the previous night; during his office as the Chief Editor of "Journal of Political Economy",his absence of proofreading caused the bankruptcy of this academic magazine.
Also, Mundell paid off for his free-style behavior. He should be earlier to win the Nobel Prize in Economics with a view to his contributions devoted to the science of economy for no reasons but his odd temper. Therefore, the Nobel Prize in Economics 1999 is a late fruit to him.
Though Mundell is a person with so many funny stories, the whole world recognized and accepted his point of view in economics, and his achievements are the treasure of the world.
Majority of modern economists persist in floating exchange rate system rather than fixed exchange rate system; especially after the financial crisis in Latin America and Asia, supporters of floating exchange rate system seem found strong evidence supporting their idea. They believe that the adoption of floating exchange rate is an effective way to avoid even eliminates the economic crisis in these countries.In fact, these two kinds of exchange rate systems have their own advantages and disadvantages, and one or two events are impossible to prove that one is superior over the other.
Mundell is the representative of economists persisting in fixed exchange rate system with his conclusion:common adoption of floating exchange rate system will drive back the international monetary regime.
Mundell once said: "I have to depart from so many colleagues including Meade and Friedman. However,I am glad to stay with nearly all great economics predecessors;apart from Cairns and Fisher, all past economics masters strongly object to adopt floating exchange rate among countries impossible to exchange currency each other."Someone elected three great masters affecting greatest the economic policies in 20th century,they are:Mark,Cairns and Friedman".Mundell is not included.However, persons who are really calm to look back the history may have different answer.Famous economist and representative of supply-side economics Arthur Betz Laffer concluded without a waste word: "Mundell's influence is powerful and deep same as that of Cairns. The difference is that:Mundell is correct".
On October 3,1999, the Swedish Royal Academy of Sciences awarded Mundell with the Nobel Prize in Economics. In this Nobel Prizes award ceremony, there were 5000 participants with fine dresses showing its extreme Solemn and serious atmosphere. But Mundell amazed everyone again when he was singing a song during his banquet speech:I've loved, I've laughed and cried,I've had my fill,my share of losing; And then, when tears subside,I find it all so amusing; To think I did all that,And,may I say not in a shy way,Oh no,oh no,not me,I did it, my way...