Rudi Dornbusch
Encyclopedia
Rüdiger "Rudi" Dornbusch (June 8, 1942 – July 25, 2002) was a German
economist
who worked for most of his career in the United States
.
in North Rhine-Westphalia
. After completing his secondary education at the Gymnasium am Moltkeplatz in Krefeld he went to study abroad. He received his Licence en Sciences Politiques from the University of Geneva
in 1966, where he also stayed on for a year as an Assistant in Economics in the Graduate Institute of International Studies
, and subsequently moved to the United States where he obtained his Ph.D. in economics from the University of Chicago
. He also briefly worked as a Lecturer in the Graduate School of Business of that university. For two years he stayed at the University of Rochester
as an Assistant Professor in the Department of Economics, followed by a year as Associate Professor of International Economics, again in the Graduate School of Business of the University of Chicago. In 1975 he moved to MIT, where he was appointed as Associate Professor in the Department of Economics. In 1984 he became Professor of economics. He stayed in MIT until his death in 2002.
Throughout his career his main focus was on international economics
, especially monetary policy, macroeconomic development, growth and international trade. According to some of his students and associates his talent was to extract the heart of a problem and make it understandable in simple terms. For example, he explained fluctuations in prices and exchange rates with great clarity (notably with his Overshooting Model
). He worked also for the International Monetary Fund
, making controversial contributions to the development of stabilisation policies, especially for Latin American countries. For more than 15 years he served as an associate editor of the Quarterly Journal of Economics
.
Together with Stanley Fischer
he also wrote widely used undergraduate textbooks.
He died, aged sixty, from cancer
.
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
who worked for most of his career in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
Biography
Dornbusch was born in KrefeldKrefeld
Krefeld , also known as Crefeld until 1929, is a city in North Rhine-Westphalia, Germany. It is located northwest of Düsseldorf, its centre lying just a few kilometres to the west of the River Rhine; the borough of Uerdingen is situated directly on the Rhine...
in North Rhine-Westphalia
North Rhine-Westphalia
North Rhine-Westphalia is the most populous state of Germany, with four of the country's ten largest cities. The state was formed in 1946 as a merger of the northern Rhineland and Westphalia, both formerly part of Prussia. Its capital is Düsseldorf. The state is currently run by a coalition of the...
. After completing his secondary education at the Gymnasium am Moltkeplatz in Krefeld he went to study abroad. He received his Licence en Sciences Politiques from the University of Geneva
University of Geneva
The University of Geneva is a public research university located in Geneva, Switzerland.It was founded in 1559 by John Calvin, as a theological seminary and law school. It remained focused on theology until the 17th century, when it became a center for Enlightenment scholarship. In 1873, it...
in 1966, where he also stayed on for a year as an Assistant in Economics in the Graduate Institute of International Studies
Graduate Institute of International Studies
The Graduate Institute of International Studies, best known as HEI , was founded in 1927 as one of the first institutions in the world dedicated to the study of international relations...
, and subsequently moved to the United States where he obtained his Ph.D. in economics from the University of Chicago
University of Chicago
The University of Chicago is a private research university in Chicago, Illinois, USA. It was founded by the American Baptist Education Society with a donation from oil magnate and philanthropist John D. Rockefeller and incorporated in 1890...
. He also briefly worked as a Lecturer in the Graduate School of Business of that university. For two years he stayed at the University of Rochester
University of Rochester
The University of Rochester is a private, nonsectarian, research university in Rochester, New York, United States. The university grants undergraduate and graduate degrees, including doctoral and professional degrees. The university has six schools and various interdisciplinary programs.The...
as an Assistant Professor in the Department of Economics, followed by a year as Associate Professor of International Economics, again in the Graduate School of Business of the University of Chicago. In 1975 he moved to MIT, where he was appointed as Associate Professor in the Department of Economics. In 1984 he became Professor of economics. He stayed in MIT until his death in 2002.
Throughout his career his main focus was on international economics
International economics
International economics is concerned with the effects upon economic activity of international differences in productive resources and consumer preferences and the institutions that affect them...
, especially monetary policy, macroeconomic development, growth and international trade. According to some of his students and associates his talent was to extract the heart of a problem and make it understandable in simple terms. For example, he explained fluctuations in prices and exchange rates with great clarity (notably with his Overshooting Model
Overshooting Model
The Overshooting Model or Exchange rate overshooting, first developed by economist Rudi Dornbusch, aims to explain why exchange rates have a high variance. A key element of the model is that expectations of exchange rate changes are "consistent" — that is, rational — rather than static...
). He worked also for the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
, making controversial contributions to the development of stabilisation policies, especially for Latin American countries. For more than 15 years he served as an associate editor of the Quarterly Journal of Economics
Quarterly Journal of Economics
The Quarterly Journal of Economics, or QJE, is a peer-reviewed academic journal published by the Oxford University Press and edited at Harvard University's Department of Economics. Its current editors are Robert J. Barro, Elhanan Helpman and Lawrence F. Katz...
.
Together with Stanley Fischer
Stanley Fischer
Stanley "Stan" Fischer is an American-Israeli economist and the current Governor of the Bank of Israel. He previously served as Chief Economist at the World Bank.-Biography:...
he also wrote widely used undergraduate textbooks.
He died, aged sixty, from cancer
Cancer
Cancer , known medically as a malignant neoplasm, is a large group of different diseases, all involving unregulated cell growth. In cancer, cells divide and grow uncontrollably, forming malignant tumors, and invade nearby parts of the body. The cancer may also spread to more distant parts of the...
.
Major works
- Macroeconomics, McGraw-Hill, New York, 1990 (with S. Fischer) 5th ed.
- International Economic Policy: Theory and Evidence, Johns Hopkins University Press, (edited with J.A. Frenkel.)
- Open Economy Macroeconomics, Basic Books, New York, 1980.
- Inflation, Debt and Indexation, MIT Press, 1983. (ed. with M.H. Simonsen.)
- Financial Policies and the World Capital Market, University of Chicago Press, 1983. (ed. with P. Aspe and M. Obstfeld.)
- Economics, McGraw-Hill, New York, 1987, 2nd ed. (with S. Fischer and R.Schmalensee)
- Restoring Europe's Prosperity, (with O. Blanchard and R. Layard) MIT Press, 1986.
- Dollars, Debts and Deficits, MIT Press, 1987.
- Macroeconomics and Finance, (Essays in Honor of Franco Modigliani) MIT Press, 1987, (Ed. with S.Fischer)
- The Political Economy of Argentina, 1946–83, Macmillan, 1988. (ed. with G. diTella)
- Exchange Rates and Inflation MIT Press, 1988.
- Stopping High Inflation (ed.with M.Bruno, G.diTella and S.Fischer), MIT Press, 1988.
- The Open Economy: Tools for Policy Makers in Developing Countries (ed. with Leslie Helmers) Oxford University Press, 1988.
- Public Debt Management: Theory and History (ed.with Mario Draghi) Cambridge University Press, 1990.
- Reform in Eastern Europe (jointly with O.Blanchard et al.) MIT Press, 1991.
- Global Warming: Economic Policy Responses (ed. with J.Poterba) MIT Press, 1991.
- The Macroeconomics of Populism in Latin America (ed. with S.Edwards). MIT Press, 1991.
- East-West Migration (with Layard, Blanchard, and Krugman) MIT Press, 1992.
- Postwar Economic Reconstruction and Lessons for the East Today (ed. with W. Nolling and R.Layard) MIT Press, 1993
- Stabilization, Debt, and Reform: Policy Analysis For Developing Countries, Prentice Hall, 1993.
- Reform, Recovery and Growth (ed. with S.Edwards) University of Chicago Press, 1994.
- Financial Opening: Policy Lessons for Korea, (edited with Y.C.Park), Korea Institute of Finance, International Center For Economics Growth, 1995.
- Keys to Prosperity: Free Markets Sound Money and a Bit of Luck, MIT Press, 2000.
Honors and distinctions
- Fellow of the Econometric Society.
- John Simon Guggenheim Fellowship,1979.
- Fellow of the American Academy of Arts and Sciences.
- Doctor honoris causa, University of Basel, 1988.
- Honorary Professor, Universidad del Pacifico, Lima, Peru, 1989.
- Foreign Member, Finnish Academy of Science and Letters, 1992.
- Harms Prize, Institute for World Economy, Kiel, 1992.
- Honorary doctorate, Catholic University, Lima Peru, 1998.
- CES Distinguished Fellow, Center for Economic Studies, Munich University, 1998.
- Concord Prize, Krefeld, 1999
- Top 100 Economists in the World according to IDEAS/RePEcŘepečŘepeč is a village and municipality in Tábor District in the South Bohemian Region of the Czech Republic.The municipality covers an area of , and has a population of 267 ....