Mundell is proposing, in effect, a de facto super-regional currency area by managing the exchange rate between the dollar and the euro through a process of central bank coordination.

FORBES: Mundell's Dollar/Euro Fix Doesn't Fix Our Currency Mess

And if a devaluation cannot be used to reduce real wages, the real exchange rate overvaluation will be undone via a slow and painful process of wage and price deflation.

FORBES: Friedman and Roubini on the Euro Breakup

It would oblige Argentina to continue trying to adjust its real exchange rate by deflation (cutting nominal wages and prices in nominal terms), a process which has already forced the collapse of many businesses.

ECONOMIST: Struggling on | The