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Introduction
In recent months the price of Bitcoin has risen sharply on balance, despite some fluctuations. The largest cryptocurrency’s latest price spike is prompting talk about Bitcoin’s future. Pressing questions are coming up. Is Bitcoin money or not? Why is Bitcoin valuable? And what does the future hold?
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Skeptics anticipate a collapse at some point, while true crypto believers see Bitcoin as the currency of the future. The discussions about Bitcoin are very broad and opinion is divided on even its most basic aspects. For example, Bitcoin was designed to be a payment method, but more and more people have come to view it mainly as a new investment category. The likely future of Bitcoin is also the subject of debate; will it replace the existing system, or will it eventually become “just” another new financial produc
Richard Cooper, Robert Mundell, and John Williamson made important contributions on a variety of topics in international economics throughout their careers, particularly in terms of how we think about currency arrangements. This column reviews the work of all three, tracing their ideas and drawing lessons for policymakers today.
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Robert Mundell, winner of the Economics Nobel in 1999, recently passed away at the age of eighty-eight. As many of the obituaries have explained, Mundell is considered the intellectual father of the euro and was associated with the supply-side revolution in economics in the early 1980s.
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