R. Dornbusch, 60; Professor, Economist, Exchange Rate Expert

Rudiger Dornbusch, 60, an economist noted for his research on the theory of exchange rates and international economic policy, died Thursday of cancer at his home in Washington, D.C.

Dornbusch was a Ford Professor of Economics and International Management at the Massachusetts Institute of Technology.

In 27 years of teaching at MIT, he trained many international economic policy scholars and practitioners. He was also a contributor to Business Week magazine for many years.

Dornbusch was widely acclaimed for his seminal research on the theory of exchange rate determination and international economic policy, and was especially well-known for his work on Latin America.

In a paper published in the mid-1970s, Dornbusch showed that shocks to a country’s monetary policy could lead to larger exchange rate movements in the short run than in the longer run.

Until just a few weeks before his death, he remained actively involved in analyzing economic policy in developing nations.

The German-born Dornbusch earned a degree in political science from the University of Geneva and a doctorate in economics from the University of Chicago. He joined MIT in 1975 and became a full professor in 1978.