Mundell Says He Has Reservations About ECB Rate Increase

Nobel Laureate Robert Mundell expressed reservation today about last week’s decision to raise interest rates in the euro zone announced by Jean-Claude Trichet, president of the European Central Bank.

“I wish he hadn’t done it,” Mundell, whose research contributed to the creation of the euro, said in an interview on Bloomberg Television. Mundell is a professor of economics at Columbia University in New York.

It would be more appropriate to work toward compromise over the different types of problems facing countries in northern and southern Europe, he said, adding that “the quarter of 1 percent is not going to make or break Europe.”