‘Euro Father’ at World Championship

‘Euro Father’ Mundell: Greek Issues Won’t Hurt Bulgaria’s Bid for Eurozone
Finance April 30, 2010, Friday

The financial problems in Greece will not interfere with Bulgaria’s accession to the Eurozone, according to “the father of the euro”, Professor Robert Mundell.

Mundell, Nobel Memorial Prize in Economics winner and professor at Columbia University, made the first move of the fifth game of the World Chess Title Match between Bulgaria’s Veselin Topalov and Indian world champion Viswanathan Anand in Sofia on Friday.

The economics professor declared he saw no way the economic crisis would shatter the Eurozone, or would hinder Bulgaria’s admission into it.

“I don’t see how the economic crisis in Greece would affect the euro. This is a fiscal problem, not a problem of the euro. Let me give you an example. If California has a fiscal problem, this is a problem of California, not a problem of the dollar,” Professor Mundell explained.

“I don’t think that Greece’s situation will prevent Bulgaria from entering the Eurozone. You are in a much better situation than Greece.

Your monetary policy has already been decided but you can still work on your fiscal policy. It is essential – if there are even slight signs that you might end up in Greece’s situation – to take control of things immediately,” he elaborated.

The Nobel Prize laureate said he did not think the appearance of the euro was the pinnacle of his life because his four children were the most important thing for him.

“There is definitely a connection between chess and the economy. You need to have good understanding and to do the right moves in both of them,” Mundell stated.

Here is the full article.