Mundell vs Friedman on exchange rates

I came across this debate on random surfing on Bob Mundell, the 1999 Nobel laureate who got the same for his work on exchange rates. His most famous work is what we call today as impossible trinity (see my few posts on this here and here)

This is a debate between 2 economics stalwarts and was done sometime in May 2001. It may be old but is very relevant even today and is a pleasure to read. However, to understand the nuances fully, one has to be on his toes and is a not a light read as I thought it would be.

They begin with basics of exchange rates (Mundell is for fixed, Friedman for flexible), then discuss Euro (Mundell lauds the success, Friedman sceptical about its success). They share their views on Bretton Woods, Gold Standard, and finally on World Currency. It is an excellent primer on so many topics.

Both have many differences on the topics. But there is a similarity as well. Yes, both are from Univ of Chicago :-)Friedman was  always in Chicago and Mundell has done majority of his research in Chicago.

Rudi Dornbusch has written a nice write-up in middle (page 11-14 of PDF) on the University:

Every so often there was a gladiator event, a workshop where for some reason faculty from different areas got together and got at each other. Mundell vs. Friedman were special events. Friedman obviously admired the sheer creativity of Mundell but would not let him get by, sparks would fly. Mundell  recognized Friedman as an icon but understood that he could play the bad boy with success. I remember the unspeakable from Mundell: “Milton, the trouble with you is you lack common sense”.