Professor Robert Mundell from Columbia University, the father of Euro and Nobel Prize Laureate in Economics in 1999, paid a 3-day academic visit to the Finance and Statistics College of Hunan University from June 20 to 22. On the afternoon of June 21, Professor Mundell delivered a speech entitled “Financial Crisis and the Prospect of International Monetary System” to about 600 teachers and students on North Campus of Hunan University.
According to Professor Mundell, since euro zone and US dollar zone have taken up 40 percent of the world economy, a stable exchange rate between euros and US dollars can promote the development of global economy. European Central Bank (ECB) and US Federal Reserve Bank can reach an agreement to intervene in the exchange rate in a certain range in order to avoid exchange rate fluctuation. He said that China can also join the mechanism of a stable exchange rate after the full convertibility of RMB under the guidance of a more prudent and consistent monetary policy. [source: Hunan University]