Mundell vs. Friedman Debate. If Friedman were alive, he would kick Mundell and Draghi's asses.

http://www.irpp.org/po/archive/may01/friedman.pdf
A lot of people on the right remember Friedman only as a free market advocate, but he was a little complicated figure when it comes to monetary policy, where his main contribution to modern economics belongs. Obviously, he did not support f
iscal stimulus but indeed supported monetary stimulus, i.e., the central bank lowering key interest rates, buying long-term government bonds, and increasing monetary base, when the economy is in recession. Since he was a Irving Fisher influence like many other macroeconomists, he also believed inflation could erode debt overhang, although he expected long-run price stability would be a real concern. In this piece, his main concern on the euro was that Europe is not optimum currency area at all and political division by nation state would lead euro to dysfunction. Mundell was unbelievably optimistic for that even against the theory he himself developed. (He still keeps that position, but sounds very unassertive.) It's been 10 years since this debate. Who was right?