Open Economy Macroeconomics: 1999 Nobel Prize

The article summarizes the seminar ""Open Economy Macroeconomics: 1999 Nobel Prize"" held by the Czech Economic Association in March 2000. The seminar was devoted to the work of Professor Robert A. Mundell, the 1999 Nobel laureate in economics. There were three main speakers at the seminar: first was Jiøí Jonáš (International Monetary Fund, Washington), who lectured on the impact of Prof. Mundell's work on the IMF's approach to macroeconomic stabilization. Martin Mandel (University of Economics, Prague) discussed Robert Mundell's 1962 article on the principle of effective market classification. He described how this principle is altered if we change the definition of the external balance of an economy to exclude external debt financing. The third speaker, Vladimír Tomšík (Komerèní banka, Prague), who compared the well-known Mundell-Fleming model with more general Keynesian-Monetarist model. He demonstrated how these two models can be effectively used to analyze the Czech economy of the past few years. The seminar presentations were followed by a discussion.