Nobel Laureate: Azerbaijani economy avoids significant consequences of world crisis
Azerbaijan, Baku, May 29 / Trend A. Badalova /
Economy of Azerbaijan, as opposed to economies of other countries, avoided significant consequences of the global financial crisis, Professor at the Columbia University, Nobel Laureate in Economics in 1999, founder of theory of optimum currency areas, Robert Mundell said.
Nevertheless, the country is greatly dependent on world oil prices, he said.
"This is a very good period in terms of oil prices. But if they fall again, it will harm the economy", Mundell told Trend.
Large fluctuations between the dollar and the euro pose great difficulties, particularly for countries such as Azerbaijan, Georgia, Armenia. The difficulties caused by the fluctuations are to stabilize one of these major currencies. In particular, a sharp increase in the dollar in the dollar zone can lead to a drop in some economies, he said.
He said that a single global currency can minimize the damage, which brings the fluctuation of rates of European and American currencies. It will help to stabilize the exchange rate of the dollar and the euro soon.
Robert Mundell is a founder of the idea of creating a new world currency Intor, including the Japanese yen, U.S. dollar, the euro and perhaps, the Chinese yuan.
Speaking about the future dynamics of European currency, Mundell said that people today confuse crisis of the euro with fiscal crisis. He said that the events occurring in Europe now can not be connected with the euro. This fiscal crisis, not crisis of the euro, Mundell said.
A period of recovery has begun. "Asia is in a rather good position. The U.S. economy is also recovering," Mundell said.
However, he expressed concern about the strong position of the U.S. dollar. "A strong dollar can delay the growth of the U.S. economy," Mundell said.
Robert Mundell is Nobel Laureate in Economics of 1999 for the analysis of monetary and fiscal policy within different exchange-rate regimes, as well as analysis of optimal currency zones.