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https://www.wsj.com/articles/robert-mundell-predicted-our-economic-instability-exchange-rates-money-supply-floating-fed-eadac3f1

Mundell Predicted Our Economic Instability

The Nobel laureate knew that floating exchange rates would make the global economy volatile.

By Sean Rushton

April 11, 2023 5:54 pm ET

Wonder Land: Joe Biden’s administration is willing to bail out, backstop, guarantee and subsidize just about everything. Images: Storyblocks/Pool Via Cnp/Zuma Press

As the world attempts to stave off a new banking crisis, it’s worth remembering the lessons of Nobel economics laureate Robert Mundell (1932-2021). Mundell showed that domestic economic policy doesn’t operate in a vacuum but rather interacts with—and affects—global financial forces such as international capital and trade flows.

Opinion

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