Robert Mundell won the Nobel Prize for economics in 1999 and is widely known for his theoretical work on the development of the euro, the interplay among exchange rates, inflation, and economic growth, and his advocacy of supply-side economics. He also has developed some interesting views on the startling economic rise of China.
The Columbia University economics professor spoke with Asia Correspondent Frederik Balfour on May 4, during a swing through Hong Kong, about how Beijing should deal with China’s burgeoning global trade surplus and the dangers of allowing the yuan to appreciate too rapidly. Here is an edited version of their conversation. [Business Week]