Mundell prefers fixed exchange rate for its stability

Bloomberg's Sophie Leung reports that "Robert Mundell, the Nobel Prize- winning economist, signaled that China’s pledge to return to a more flexible exchange-rate policy may erode stability in the global and Chinese economies."

See http://www.businessweek.com/news/2010-06-21/nobel-laureate-signals-yuan-move-to-erode-stability-update2-.html

Mundell appears to support fixed exchange rate for its stability over floating rate's swings.

The report says "Mundell, credited as the intellectual “father” of the euro, has previously called for the European currency to be fixed against the dollar, saying exchange-rate swings were a cause of the global financial crisis."