Noted neoclassical mainstream economist, Robert Mundell, has died at the age of 88 years.  Mundell won a Nobel (Riksbank) prize in economics for his extension of general equilibrium theory as applied to Keynesian macroeconomics into the international arena.  Whereas the neoclassical equilibrium version of Keynes’ macromodel (called ‘bastardised Keynesianism’ by Joan Robinson) described a ‘closed’ economy (i.e. no trade and cross border capital flows), Mundell and colleague Marcus Fleming developed an equilibrium model for an ‘open’ economy (that had international trade and cross-border money and capital flows).

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