Rudiger Dornbusch: Currency

Rudiger Dornbusch was German economist. Explore interesting quotes on currency.

Rudiger Dornbusch: 20 quotes 2 likes

“The most likely scenario is that EMU (Economic and Monetary Union of the European Union) will occur but will neither end Europe’s currency troubles nor solve its prosperity problems.”

Rudiger Dornbusch

Euro fantasies, 1996

Problem

“Once Italy is in, with an appreciated currency, the country will soon be back on the ropes, just as in 1992, when the currency came under attack.”

Rudiger Dornbusch

Euro fantasies, 1996

Country

“In figure 3 we show the money and domestic asset market equilibrium schedules for given stocks of each of the assets. Along MM the domestic money market is in equilibrium. Higher interest rates reduce money demand so that equilibrium requires a depreciation and thus a rise in the domestic currency value of foreign assets and - hence wealth. The exchange rate thus plays a balancing role by affecting the valuation of assets.”

Rudiger Dornbusch

Source: Open economy macroeconomics, 1980, p. 14

Money , Wealth