Rudiger Dornbusch

The late Rudiger Dornbusch was Professor of Economics at the Massachusetts Institute of Technology.

  • Money, Capital Mobility, and Trade

    Money, Capital Mobility, and Trade

    Essays in Honor of Robert A. Mundell

    Guillermo A. Calvo, Rudiger Dornbusch, and Maurice Obstfeld

    Written by Robert Mundell's academic descendants, as well as other leading economists and scholars, the essays in this volume reflect Mundell's broad influence on modern open-economy macroeconomics. The topics include the vicissitudes of gold in the international system, choice of exchange rate regime, post-World War II European monetary reform, banking crises in emerging markets, speculative attacks on fixed exchange rates, monetary policy rules, interactions between economists and policy makers over macrostabilization and structural microeconomic issues, the connection between international factor mobility and trade, the Mundell-Fleming open-economy macro model, the quantitative implications of general-equilibrium sticky price models, the international roles of the euro and yen, and the employment effects of import tariffs.

    • Hardcover $68.00 £46.95
    • Paperback $7.75 £6.99
  • Keys to Prosperity

    Keys to Prosperity

    Free Markets, Sound Money, and a Bit of Luck

    Rudiger Dornbusch

    Timely commentaries and essays from economist Rudi Dornbusch.

    The underlying theme of Rudi Dornbusch's work is unabashedly Chicago, namely, the University of Chicago belief that markets solve problems best and that most bureaucrats, even when well-intentioned, are distracted by politics or excessive zeal for perfect solutions. Dornbusch seeks to challenge those in charge with alternative answers and to limit their ambitions. He takes aim at central bankers, bureaucrats, unions, do-gooders, and politicians from Brazil, Japan, Russia, and other scenes of economic disaster. This book collects Dornbusch's recent commentaries from such publications as Business Week, the Wall Street Journal, and the Financial Times, as well as longer essays from recent and forthcoming books. The pieces focus on issues of domestic and international economic policy, including inflation and debt, exchange rates, trade policy, emerging markets, and the intersection of politics and economics. The writing is lively, opinionated, and informative.

    • Hardcover $55.00 £37.95
    • Paperback $22.95 £17.99
  • Post-Communist Reform

    Post-Communist Reform

    Pain and Progress

    Olivier Blanchard, Maxim Boycko, Marek Dabrowski, Rudiger Dornbusch, Richard Layard, and Andrei Shleifer

    In this new report, they take stock, returning to the original themes and assessing progress and prospects, particularly in Russia.

    In their earlier report, Reform in Eastern Europe, the WIDER group assessed the main building blocks of a successful transition in Eastern Europe: stabilization, price liberalization, privatization, and restructuring. For the last three years this group of leading economists has been heavily involved in the reform process. In this new report, they take stock, returning to the original themes and assessing progress and prospects, particularly in Russia.Stabilization in the major Central European countries was done very much by the book. Russia, in contrast, is following a path of restructuring without stabilization. The authors discuss how far this alternative strategy is likely to get. Turning to privatization, they note that initial plans started from the assumption that the state owned the assets. As slow progress of those plans has painfully shown, this was the wrong assumption. They point out that assets have in fact many de facto claimants, from managers to workers to local authorities to ministries, and discuss how the current Russian privatization program starts and builds up from this more realistic assessment.

    In the face of a collapse of trade in Eastern Europe, triggered by reform in Central Europe and a similar collapse between republics following the breakup of the Soviet Union, the authors show how simple measures such as a payments union can be used to increase trade and output. Post-Communist Reform concludes with a look at restructuring in Poland. The authors focus on the behavior of the state, the growth of the private sector, the role of financial systems, and the coherence of overall government policy, ending on a note of cautious optimism.

    • Hardcover $32.00 £22.95
    • Paperback $16.00 £12.99
  • Postwar Economic Reconstruction and Lessons for the East Today

    Postwar Economic Reconstruction and Lessons for the East Today

    Rudiger Dornbusch, Wilhelm Nolling, and Richard Layard

    The case studies in this book examine significant parallels between the situation in Eastern Europe today and the issues facing Europe and Japan after World War II, offering insights on what kinds of policy actions will be most effective in this difficult period of reconstruction.

    The breakup of the Soviet Union and the consequent extraordinary problems faced by Eastern European nations raise pressing economic questions. The case studies in this book examine significant parallels between the situation in Eastern Europe today and the issues facing Europe and Japan after World War II, offering insights on what kinds of policy actions will be most effective in this difficult period of reconstruction. The essays address such topics as the relative roles of government and the market; economic openness; industrial conversion from war to peacetime production; the roles of institutions, enterprises, the business community, and their work staffs; and external control of policy measures, of resources made available by the outside world, and of the general external environment. In their introductory chapter, the editors provide an overview that addresses the question of whether reconstruction can ever be managed smoothly.

    Contents Openness, Wage Restraint, and Macroeconomic Stability: West Germany's Road to Prosperity 1948-1959, H. Giersch, K. H. Paqué, M. Schmieding • The Lucky Miracle: Germany 1945-1951, H. Wolf • Inflation and Stabilization in Italy 1946-1951, M. De Cecco and F. Giavazzi • Economic Reconstruction in France 1945-1958, G. Saint-Paul • Reconstruction and the U.K. Postwar Welfare State: False Start and New Beginning, P. Minford • A Perspective on Postwar Reconstruction in Finland, J. Paunio • The Reconstruction and Stabilization of the Postwar Japanese Economy, K. Hamada and M. Kasuya • The Marshall Plan: History's Most Successful Structural Adjustment Program, J. B. De Long and B. Eichengreen • Lessons for Eastern Europe Today, 0. Blanchard, R. Portes, W. Nolling

    • Hardcover $48.00 £33.95
    • Paperback $24.00 £18.99
  • East-West Migration

    East-West Migration

    The Alternatives

    Richard Layard, Olivier Blanchard, Rudiger Dornbusch, and Paul Krugman

    This sequel to Reform in Eastern Europe is a report on one of the most pressing issues for countries with economies in transition and their neighbors. Focusing on the problem of East-West migration, the authors clearly delineate and promote the notion of European free trade and capital flows as a means of raising productivity and increasing worker stability in the East and of reducing income gaps between countries.

    As economists who have been deeply and consistently involved in the recent upheavals in the East, the authors are in a position to take a well-informed stance on the economic and social dislocations that are occurring. They first outline the problem and recommend that Europe begin to admit primary migrants and that the US increase its quota. They then look at migration statistics from previous eras to predict equivalent levels in the near future and take into account the long-run and short-run effects of migration in the US and Europe. They conclude with a detailed discussion of "the best defense of all," economic progress, and lay out the necessary conditions for free trade, investment, and aid.

    • Hardcover $22.00
    • Paperback $18.00 £13.99
  • Reform in Eastern Europe

    Reform in Eastern Europe

    Olivier Blanchard, Rudiger Dornbusch, Paul Krugman, Richard Layard, and Lawrence H. Summers

    How can the new governments of Eastern Europe succeed in moving from centrally planned to freemarket economies? This incisive report identifies and describes the major policy choices to be made and discusses what will work and what will not.Reform in Eastern Europe provides a comprehensive, easily read statement of reform policy that stands in the mainstream of modern Western economics. Based on their experience with stabilization policies in other countries, the authors show how Eastern Europe can reduce unemployment during the painful adjustment process, create effective and socially acceptable mechanisms to subject enterprises to market discipline, and replace barter trade under CMEA with market-based international trade.

    • Hardcover $22.00
    • Paperback $16.00 £12.99
  • Global Warming

    Global Warming

    Economic Policy Responses

    Rudiger Dornbusch and James M. Poterba

    The contributions in this book focus instead on the economic effects of global warming, providing an excellent summary of current thinking on this important issue.

    Global warming is debated largely in environmental terms. The contributions in this book focus instead on the economic effects of global warming, providing an excellent summary of current thinking on this important issue. They raise such crucial questions as: Which countries will suffer the most from climate change? What economic initiatives could be adopted to reduce carbon dioxide emissions and chlorofluorocarbons? How will different nations fare under various proposals? What are the prospects for international cooperation?

    Contents Is There a Global Warming Problem? Andrew R. Solow • Economic Approaches to Greenhouse Warming, William D. Nordhaus • Tax Policy to Combat Global Warming: On Designing a Carbon Tax, James M. Poterba • Technological Substitution Options for Controlling Greenhouse Gas Emissions, David W. Pearce • Economic Responses to Climate Change: A European Perspective, Emilio Gerelli • Economic Responses to Global Warming/International Burden Sharing and Coordination: Prospects for Cooperative Approaches to Global Warming, T.C. Schelling • The International Incidence of Carbon Taxes, John Whalley

    Global Warming Initiatives The Pacific Rim, Hirofumi Uzawa • Optional for Slowing Amazon Jungle-Clearing, Eustaquio Reis and Sergio Margulis

    Discussants Lars Bergman, William R. Cline, Peter Diamond, Lester B. Lave, Alan Manne, John P. Martin, Thorvald Moe, David M. Newbery, Norman J. Rosenberg, Lutz Wicke, Gerrit Zalm

    • Hardcover $68.00 £46.95
    • Paperback $30.00 £24.00
  • Inflation Stabilization

    Inflation Stabilization

    The Experience of Israel, Argentina, Brazil, Bolivia, and Mexico

    Michael Bruno, Guido Di Tella, Rudiger Dornbusch, and Stanley Fischer

    Rampant inflation is a major economic problem in many of the less developed countries; two out of three attempts to stabilize these economies fail. Inflation Stabilization provides a valuable description and a critical analysis of the disinflation programs introduced in Argentina, Bolivia, Brazil, and Israel in 1985-86, and discusses the possibility of such a program in Mexico. It documents the initial steps in stabilization as well as the reasons for failure.As architects of the programs, several of the authors are in key positions to assess which aspects were critical in getting the programs accepted and where to look for difficulties and failures.

    In Israel, inflation was halted without recession. The challenge to policy makers today is in shifting from stabilization to the revival of sustained growth. This experience is described fully by Michael Bruno and Sylvia Piterman, who examine the critical issue of exchange rates, and by Alex Cukierman, who uses modeling to analyze the interaction of money, wages, prices, and activity under rational expectations that take the government's policy objectives into account.Endemic inflation and a sudden increase in external debt burden Argentina's economy, raising the wider issues of high inflation economies and stabilization that are discussed in the chapter by José Luis Machinea and that by Guido Di Tella and Alfredo Canavese.Eduardo Modiano and Mario Simonsen take up issues of wages in Brazil, particularly the problem of finding an equitable way to deal with a wage freeze; Simonsen develops an ambitious game theoretic rationalization of incomes policy as a coordinating device for imperfectly competitive economies.

    Bolivia did reach hyperinflation (price increases of more than 50 percent each month) before stabilizing. Juan Antonio Morales shows how stabilizing the exchange rate, in an economy where all pricing was already geared to the dollar, achieved stabilization without a wage or price freeze. And Francisco Gil Diaz asks whether an incomes-policy based program could work to control ever increasing inflation in Mexico.

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  • Restoring Europe's Prosperity

    Restoring Europe's Prosperity

    Macroeconomic Papers from the Centre for European Policy Studies

    Olivier Blanchard, Rudiger Dornbusch, and Richard Layard

    Restoring Europe's Prosperity is the first annual produced by the Centre for European Policy Studies (CEPS), an independent research institution which focuses on the major medium- and long-term issues facing the European community and Western Europe both internally and internationally.The most important economic problems of the past five years have concerned unemployment, economic growth, fiscal deficits, and the value of the U.S. dollar. It is clear that past and present economic policies have not effectively addressed these problems. This CEPS annual selects the best work of the Centre's Macroeconomic Policy Group; a rotating group of distinguished economists who are studying macroeconomic conditions and trends, the implications of the economic policies being pursued, and possible alternative policies.

    Essays Macroeconomic Prospects and Policies for the European Community, by R. Dornbusch, G. Basevi, O. Blanchard, W. Buiter, and R. Layard • Europe: The Case for Unsustainable Growth, by R. Layard, G. Basevi, O. Blanchard, W. Buiter, and R. Dornbusch • Employment and Growth in Europe: A Two-Handed Approach, by O. Blanchard, R. Dornbusch, J. Dreze, H. Giersch, R. Layard, and M. Monti • Public Debt and Fiscal Responsibility, by O. Blanchard, R. Dornbusch, and W. Buiter • US Deficits, the Dollar, and Europe, by O. Blanchard and R. Dornbusch

    • Hardcover $28.00
    • Paperback $26.00 £20.00