CANADIAN WINS NOBEL PRIZE.Byline: Bruce Stanley Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. A Canadian economist whose innovative analysis of exchange rates helped lay the intellectual groundwork for Europe's common currency won the Nobel Prize Nobel Prize, award given for outstanding achievement in physics, chemistry, physiology or medicine, peace, or literature. The awards were established by the will of Alfred Nobel, who left a fund to provide annual prizes in the five areas listed above. for economic sciences Wednesday. Robert A. Mundell of Columbia University Columbia University, mainly in New York City; founded 1754 as King's College by grant of King George II; first college in New York City, fifth oldest in the United States; one of the eight Ivy League institutions. in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of developed theories about monetary economics in the 1960s that were radical at the time. Yet his idea that more than one country might benefit from use of the same currency inspired the creation of the euro that 11 European nations came to share some 35 years later. The academy applauded Mundell, 67, for clarifying how exchange rates fluctuate when a government changes its monetary policy. As far back as 1961, Mundell raised what was then a novel question: When would it be advantageous for nations to give up monetary sovereignty in favor of a common currency? The question of whether the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents should have a fixed or flexible exchange rate against the U.S. dollar led him to believe that more than one country could form the optimum area for a single currency. Such a view must have seemed then like an academic curiosity, the academy said, because at the time all countries were linked together by fixed exchange rates within the so-called Bretton Woods System The Bretton Woods system of international monetary management established the rules for commercial and financial relations among the world's major industrial states. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary . Mundell's analysis became increasingly relevant during the next decade as controls on international capital movement began to ease and the Bretton Woods System broke down. CAPTION(S): Photo Photo: (Color) MUNDELL |
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