# Rudi Dornbusch

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German economist (1942–2002)

Rudi Dornbusch Born Rüdiger Dornbusch (1942-06-08)June 8, 1942 Krefeld, Rhine Province, Germany Died July 25, 2002(2002-07-25) (aged 60) Washington, D.C., U.S. Academic background Education University of Geneva (BA) Graduate Institute of International Studies (BA) University of Chicago (MA, PhD) Doctoral advisor Robert Mundell[1] Academic work Discipline International economics School or tradition New Keynesian economics Institutions MIT (1975–2002) University of Chicago (1974–1975) University of Rochester (1972–1974) Doctoral students Andrew Abel[2] Pedro Aspe Eliana Cardoso José De Gregorio Jeffrey Frankel Francesco Giavazzi Ilan Goldfajn[3] Paul Krugman[4] Maurice Obstfeld[5] Kenneth Rogoff[6] Christina Romer[7] D. Nathan Sheets Notable ideas Overshooting model Dornbusch's law Website Information at IDEAS / RePEc

**Rüdiger** "**Rudi**" **Dornbusch** (June 8, 1942 – July 25, 2002) was a German [economist](/source/Economist) who worked in the United States for most of his career.

## Early life and education

Dornbusch was born in [Krefeld](/source/Krefeld) in 1942.[8] After completing his secondary education at the [Gymnasium am Moltkeplatz](https://de.wikipedia.org/wiki/Gymnasium_am_Moltkeplatz), he studied [political science](/source/Political_science) at the [University of Geneva](/source/University_of_Geneva), and received his undergraduate degree (*licence en sciences politiques*) from the [Graduate Institute of International Studies](/source/Graduate_Institute_of_International_Studies) in 1966.[8] He went on to graduate study at the [University of Chicago](/source/University_of_Chicago), receiving a [M.A.](/source/Master_of_Arts) in [economics](/source/Economics) in 1966, and a [Ph.D.](/source/Doctor_of_Philosophy) in economics in 1971.[8]

## Career

He lectured briefly at the [University of Chicago Booth School of Business](/source/University_of_Chicago_Booth_School_of_Business), before serving as an [assistant professor](/source/Assistant_professor) at the [University of Rochester](/source/University_of_Rochester) for two years; he then returned to Chicago, where he served as a professor of international economics. In 1975, he moved to [MIT](/source/MIT), where he was appointed an [associate professor](/source/Associate_professor) in the [Department of Economics](/source/MIT_Department_of_Economics), and was made a [full professor](/source/Professor) in 1984.[8] He stayed at MIT until his death in 2002.[9]

Throughout his career his main focus was on [international economics](/source/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](/source/Overshooting_model)). He succeeded in making a more realistic model than [Mundell–Fleming model](/source/Mundell%E2%80%93Fleming_model) with regard to a small open economic system, considering exchange rate expectations.[10] He worked also for the [International Monetary Fund](/source/International_Monetary_Fund), contributing to the development of stabilisation policies, especially for Latin American countries. Along with [Sebastián Edwards](/source/Sebasti%C3%A1n_Edwards) he coined the term [macroeconomic populism](/source/Macroeconomic_populism). For more than fifteen years he served as an associate editor of the *[Quarterly Journal of Economics](/source/Quarterly_Journal_of_Economics)*. He is also known for Dornbusch's Law:[11]

The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.

Together with [Stanley Fischer](/source/Stanley_Fischer) he also wrote widely used undergraduate textbooks.

He died, aged sixty, from [cancer](/source/Cancer).[12]

## 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

- [John Simon Guggenheim Fellowship](/source/Guggenheim_Fellowship), 1979.

- Fellow of the [American Academy of Arts and Sciences](/source/American_Academy_of_Arts_and_Sciences).

- Doctor honoris causa, [University of Basel](/source/University_of_Basel), 1988.

- Honorary Professor, [Universidad del Pacífico](/source/Universidad_del_Pac%C3%ADfico_(Peru)), Lima, Peru, 1989.

- Foreign Member, [Finnish Academy of Science and Letters](/source/Finnish_Academy_of_Science_and_Letters), 1992.

- [Harms Prize](https://en.wikipedia.org/w/index.php?title=Harms_Prize&action=edit&redlink=1), [Institute for World Economy](https://en.wikipedia.org/w/index.php?title=Institute_for_World_Economy&action=edit&redlink=1), Kiel, 1992.[13]

- Honorary doctorate, [Catholic University](/source/Pontifical_Catholic_University_of_Peru), Lima Peru, 1998.

- [Distinguished CES Fellow, Center for Economic Studies](/source/Center_for_Economic_Studies#Distinguished_CES_Fellows), [University of Munich](/source/Ludwig_Maximilian_University_of_Munich), 1998.

- Concord Prize, Krefeld, 1999

- Named among the "Top 100 Economists in the World",[14] according to [IDEAS/RePEc](/source/RePEc)

## References

1. **[^](#cite_ref-1)** [Rudi Dornbusch by Stanley Fischer – Project Syndicate](https://www.project-syndicate.org/commentary/rudi-dornbusch?barrier=true)

1. **[^](#cite_ref-2)** Abel, Andrew B. (1978). [*Investment and the value of capital*](http://library.mit.edu/F/11SCNGN8U5196ISSKE1PQGM984KG6UAK582H65PSCTFRKLKTJL-00784?func=find-acc&acc_sequence=003442276) (Ph.D.). [MIT](/source/MIT). Retrieved October 22, 2016.

1. **[^](#cite_ref-3)** Goldfajn, Ilan (1995). [*On public debt and exchange rates*](https://dspace.mit.edu/handle/1721.1/11082) (Ph.D.). [MIT](/source/MIT). [hdl](/source/Hdl_(identifier)):[1721.1/11082](https://hdl.handle.net/1721.1%2F11082). Retrieved May 25, 2017.

1. **[^](#cite_ref-turk_4-0)** [Paul Krugman](/source/Paul_Krugman) (May 24, 2018). ["Turmoil for Turkey's Trump"](https://www.nytimes.com/2018/05/24/opinion/turkey-trump-erdogan.html). *[The New York Times](/source/The_New_York_Times)*.

1. **[^](#cite_ref-5)** [Capital mobility and monetary policy under fixed and flexible exchange rates.](http://library.mit.edu/F/XIGTSBBJ96NKYISCYKNNUGLKCUPXYRXLN4V4XI45PMDN3PG5BK-04295?func=find-acc&acc_sequence=011370172)

1. **[^](#cite_ref-6)** [Essays on expectations and exchange rate volatility](https://dspace.mit.edu/bitstream/handle/1721.1/15970/07027399-MIT.pdf?sequence=2#page=3)

1. **[^](#cite_ref-7)** [The instability of the prewar economy reconsidered : a critical examination of historical macroeconomic data.](http://library.mit.edu/F/JA5KSJ22C34NAKCHB7T549S1MTF1VDVVHHUQNM6F4QDM4A3YM4-03437?func=find-acc&acc_sequence=006454269)

1. ^ [***a***](#cite_ref-:0_8-0) [***b***](#cite_ref-:0_8-1) [***c***](#cite_ref-:0_8-2) [***d***](#cite_ref-:0_8-3) ["MIT international economist Rudiger Dornbusch dies at 60"](https://news.mit.edu/2002/dornbusch). *MIT News | Massachusetts Institute of Technology*. July 26, 2002. Retrieved January 15, 2024.

1. **[^](#cite_ref-9)** ["Rudiger Dornbusch"](https://www.economist.com/obituary/2002/08/08/rudiger-dornbusch). *The Economist*. August 10, 2002. Retrieved August 5, 2013.

1. **[^](#cite_ref-10)** Dornbusch, R. (1976). "Exchange Rate Expectations and Monetary Policy". *Journal of International Economics* 6 (3): 231–244.

1. **[^](#cite_ref-11)** Dornbusch, Rudiger (April 8, 1997). ["Murder, Money, and Mexico"](https://www.pbs.org/wgbh/pages/frontline/shows/mexico/interviews/dornbusch.html). *Frontline* (Interview). PBS.

1. **[^](#cite_ref-12)** ["MIT international economist Rudiger Dornbusch dies at 60"](https://news.mit.edu/2002/dornbusch). July 26, 2002.

1. **[^](#cite_ref-13)** ["Bernhard Harms Prize"](http://www.ifw-kiel.de/events-1/bernhard-harms-prize/bernhard-harms-prize/view?set_language=en). Kiel Institute. Retrieved August 5, 2013.

1. **[^](#cite_ref-14)** [Top 100 Economists in the World](https://ideas.repec.org/top/top.person.all.html)

## External links

- [Rudiger Dornbusch Papers](https://archivesspace.mit.edu/repositories/2/resources/1067), MC-0576. Massachusetts Institute of Technology, Department of Distinctive Collections, Cambridge, Massachusetts.

- [Dornbusch page on MIT website](http://econ-www.mit.edu/faculty/dornbusch/)

- [IDEAS/RePEc](https://ideas.repec.org/e/pdo31.html)

- [Dornbusch's opinion commentary archive](http://www.project-syndicate.org/contributor/r-diger-dornbusch) at [Project Syndicate](/source/Project_Syndicate)

- [Appearances](https://www.c-span.org/person/?5422) on [C-SPAN](/source/C-SPAN)

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Adapted from the Wikipedia article [Rudi Dornbusch](https://en.wikipedia.org/wiki/Rudi_Dornbusch) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Rudi_Dornbusch?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.