{{Short description|German economist (1942–2002)}} {{Use mdy dates|date=February 2025}} {{Infobox economist | name = Rudi Dornbusch | native_name = | native_name_lang = | school_tradition = [[New Keynesian economics]] | image =27. Internationales Management Symposium 1997-Rüdiger Dornbusch-HSGH 022-000754-04.jpg | caption = | birth_date = {{Birth date|1942|06|08|mf=y}} |birth_name=Rüdiger Dornbusch | birth_place = [[Krefeld]], [[Rhine Province]], Germany | death_date = {{Death date and age|2002|07|25|1942|06|08|mf=y}} | death_place = [[Washington, D.C.]], U.S. | resting_place = | resting_place_coordinates = | institutions = [[Massachusetts Institute of Technology|MIT]] (1975–2002)<br />[[University of Chicago]] (1974–1975)<br />[[University of Rochester]] (1972–1974) | field = [[International economics]] | doctoral_advisor = [[Robert Mundell]]<ref>[https://www.project-syndicate.org/commentary/rudi-dornbusch?barrier=true Rudi Dornbusch by Stanley Fischer – Project Syndicate]</ref> | academic_advisors= | doctoral_students= [[Andrew Abel]]<ref>{{cite thesis |last= Abel |first= Andrew B. |date= 1978 |title= Investment and the value of capital |type= Ph.D. |publisher= [[MIT]] |url= http://library.mit.edu/F/11SCNGN8U5196ISSKE1PQGM984KG6UAK582H65PSCTFRKLKTJL-00784?func=find-acc&acc_sequence=003442276 |access-date= October 22, 2016 }}</ref><br />[[Pedro Aspe]]<br />[[Eliana Cardoso]]<br />[[José De Gregorio]]<br />[[Jeffrey Frankel]]<br />[[Francesco Giavazzi]]<br />[[Ilan Goldfajn]]<ref>{{cite thesis |last= Goldfajn |first= Ilan |date= 1995 |title= On public debt and exchange rates |type= Ph.D. |publisher= [[MIT]] |hdl= 1721.1/11082 |url= https://dspace.mit.edu/handle/1721.1/11082 |access-date= May 25, 2017 }}</ref><br />[[Paul Krugman]]<ref name=turk>{{cite news |author=Paul Krugman |author-link=Paul Krugman |title=Turmoil for Turkey's Trump |url=https://www.nytimes.com/2018/05/24/opinion/turkey-trump-erdogan.html |newspaper=[[The New York Times]] |date=May 24, 2018 }}</ref><br /> [[Maurice Obstfeld]]<ref>[http://library.mit.edu/F/XIGTSBBJ96NKYISCYKNNUGLKCUPXYRXLN4V4XI45PMDN3PG5BK-04295?func=find-acc&acc_sequence=011370172 Capital mobility and monetary policy under fixed and flexible exchange rates.]</ref><br />[[Kenneth Rogoff]]<ref>[https://dspace.mit.edu/bitstream/handle/1721.1/15970/07027399-MIT.pdf?sequence=2#page=3 Essays on expectations and exchange rate volatility]</ref><br />[[Christina Romer]]<ref>[http://library.mit.edu/F/JA5KSJ22C34NAKCHB7T549S1MTF1VDVVHHUQNM6F4QDM4A3YM4-03437?func=find-acc&acc_sequence=006454269 The instability of the prewar economy reconsidered : a critical examination of historical macroeconomic data.]</ref><br />[[D. Nathan Sheets]] | notable_students = | influences = | influenced = | contributions = [[Overshooting model]]<br />[[Dornbusch's law]] | awards = | memorials = | spouse = | signature = <!--(filename only)--> | module = | repec_prefix = e | repec_id = pdo31 |education=[[University of Geneva]] ([[Bachelor of Arts|BA]])<br />[[Graduate Institute of International Studies]] ([[Bachelor of Arts|BA]])<br />[[University of Chicago]] ([[Master of Arts|MA]], [[PhD]])}}
'''Rüdiger''' "'''Rudi'''" '''Dornbusch''' (June 8, 1942 – July 25, 2002) was a German [[economist]] who worked in the United States for most of his career.
== Early life and education == Dornbusch was born in [[Krefeld]] in 1942.<ref name=":0">{{Cite web |date=July 26, 2002 |title=MIT international economist Rudiger Dornbusch dies at 60 |url=https://news.mit.edu/2002/dornbusch |access-date=January 15, 2024 |website=MIT News {{!}} Massachusetts Institute of Technology |language=en}}</ref> After completing his secondary education at the [[:de:Gymnasium am Moltkeplatz|Gymnasium am Moltkeplatz]], he studied [[political science]] at the [[University of Geneva]], and received his undergraduate degree (''licence en sciences politiques'') from the [[Graduate Institute of International Studies]] in 1966.<ref name=":0" /> He went on to graduate study at the [[University of Chicago]], receiving a [[Master of Arts|M.A.]] in [[economics]] in 1966, and a [[Doctor of Philosophy|Ph.D.]] in economics in 1971.<ref name=":0" />
== Career == He lectured briefly at the [[University of Chicago Booth School of Business]], before serving as an [[assistant professor]] at the [[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]], where he was appointed an [[associate professor]] in the [[MIT Department of Economics|Department of Economics]], and was made a [[Professor|full professor]] in 1984.<ref name=":0" /> He stayed at MIT until his death in 2002.<ref>{{cite news |date=August 10, 2002 |title=Rudiger Dornbusch |newspaper=The Economist |url=https://www.economist.com/obituary/2002/08/08/rudiger-dornbusch |access-date=August 5, 2013}}</ref>
Throughout his career his main focus was on [[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]]). He succeeded in making a more realistic model than [[Mundell–Fleming model]] with regard to a small open economic system, considering exchange rate expectations.<ref>Dornbusch, R. (1976). "Exchange Rate Expectations and Monetary Policy". ''Journal of International Economics'' 6 (3): 231–244.</ref> He worked also for the [[International Monetary Fund]], contributing to the development of stabilisation policies, especially for Latin American countries. Along with [[Sebastián Edwards]] he coined the term [[macroeconomic populism]]. For more than fifteen years he served as an associate editor of the ''[[Quarterly Journal of Economics]]''. He is also known for Dornbusch's Law:<ref>{{cite interview | first = Rudiger | last = Dornbusch | title = Murder, Money, and Mexico | date = 1997-04-08 | work = Frontline | publisher = PBS | url = https://www.pbs.org/wgbh/pages/frontline/shows/mexico/interviews/dornbusch.html}}</ref>{{Blockquote|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]] he also wrote widely used undergraduate textbooks.
He died, aged sixty, from [[cancer]].<ref>{{Cite web|url=https://news.mit.edu/2002/dornbusch|title = MIT international economist Rudiger Dornbusch dies at 60| date=July 26, 2002 }}</ref>
== 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 == *[[Guggenheim Fellowship|John Simon Guggenheim Fellowship]], 1979. *Fellow of the [[American Academy of Arts and Sciences]]. *Doctor honoris causa, [[University of Basel]], 1988. *Honorary Professor, [[Universidad del Pacífico (Peru)|Universidad del Pacífico]], Lima, Peru, 1989. *Foreign Member, [[Finnish Academy of Science and Letters]], 1992. *[[Harms Prize]], [[Institute for World Economy]], Kiel, 1992.<ref>{{cite web |title=Bernhard Harms Prize |url=http://www.ifw-kiel.de/events-1/bernhard-harms-prize/bernhard-harms-prize/view?set_language=en |publisher=Kiel Institute |access-date=August 5, 2013}}</ref> *Honorary doctorate, [[Pontifical Catholic University of Peru|Catholic University]], Lima Peru, 1998. *[[Center for Economic Studies#Distinguished CES Fellows|Distinguished CES Fellow, Center for Economic Studies]], [[Ludwig Maximilian University of Munich|University of Munich]], 1998. *Concord Prize, Krefeld, 1999 *Named among the "Top 100 Economists in the World",<ref>[https://ideas.repec.org/top/top.person.all.html Top 100 Economists in the World]</ref> according to [[RePEc|IDEAS/RePEc]]
== References == {{Reflist}}
== External links == * [https://archivesspace.mit.edu/repositories/2/resources/1067 Rudiger Dornbusch Papers], MC-0576. Massachusetts Institute of Technology, Department of Distinctive Collections, Cambridge, Massachusetts. * [http://econ-www.mit.edu/faculty/dornbusch/ Dornbusch page on MIT website] * [https://ideas.repec.org/e/pdo31.html IDEAS/RePEc] * [http://www.project-syndicate.org/contributor/r-diger-dornbusch Dornbusch's opinion commentary archive] at [[Project Syndicate]] * {{C-SPAN|5422}}
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{{DEFAULTSORT:Dornbusch, Rudi}} [[Category:1942 births]] [[Category:2002 deaths]] [[Category:International economists]] [[Category:Trade economists]] [[Category:People from Krefeld]] [[Category:University of Geneva alumni]] [[Category:Graduate Institute of International and Development Studies alumni]] [[Category:University of Chicago alumni]] [[Category:MIT Sloan School of Management faculty]] [[Category:20th-century American writers]] [[Category:20th-century German economists]] [[Category:21st-century German economists]] [[Category:Fellows of the Econometric Society]] [[Category:20th-century German male writers]] [[Category:Distinguished fellows of the American Economic Association]] [[Category:German male non-fiction writers]]