Monday, November 14, 2011

Mundell vs Friedman on the Euro

From HERE, a neat look at the debate between Milton Friedman and Robert Mundell.  Two winners of the Nobel Prize in Economics.  Two opposing views on the creation of the European monetary union, the Euro.  Friedman was against the formation of the Euro, basically saying that it was driven by politics and therefore would be administered politically and that European countries at different stages of growth required different monetary policy to be successful in the long term.  Mundell liked the Euro because it would end destabilizing monetary speculation between European country and push them along the path of political integration.

Could they both be right?  I think so, to a certain extent.  Who is ultimately correct about the Euro being a good idea or not?  We will find out.  Possibly very soon.  

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