As Mr Dornbusch concedes, currency boards involve costs, from the political to the practical.

ECONOMIST: Economics focus

According to Mr Dornbusch, the causes of Argentina's current troubles are deeper than its overvalued peso.

ECONOMIST: Economics focus

Another, which Mr Dornbusch emphasises, is that currency boards help to curb wasteful government spending.

ECONOMIST: Economics focus

As a result, it is scarcely an exaggeration to say that Mr Dornbusch reinvented international macroeconomics.

ECONOMIST: Rudiger Dornbusch

The answer is obvious once you see it, but certainly wasn't before Mr Dornbusch spelt it out.

ECONOMIST: Rudiger Dornbusch

They still wanted Mr Dornbusch, albeit at some small cost to their pride, to show them the way.

ECONOMIST: Rudiger Dornbusch

Mr Dornbusch answered that the initial fall in the currency will have to be, as it were, too big.

ECONOMIST: Rudiger Dornbusch

Still, Mr Dornbusch's main point, that it is wrong to blame the currency board for all of Argentina's ills, is surely right.

ECONOMIST: Economics focus

His advisers included Stanley Fischer, now head of Israel's central bank, and Rudiger Dornbusch, a German economist known for his work on currency markets.

ECONOMIST: The European Central Bank

Even though theory today has moved on from Mr Dornbusch's first model, with its various simplifying assumptions, current theories are in many ways descended from it.

ECONOMIST: Rudiger Dornbusch

Mr Dornbusch was born in Krefeld, Germany, in 1942.

ECONOMIST: Rudiger Dornbusch