Comment*

The contributions by Arthur Laffer and Robert Mundell were perhaps the most original and, from the theoretical point of view, the most interesting presented at the conference. After a long period during which for international economists of a theoretical bent it was practically de rigueur to endorse exchange rate flexibility, the two authors presented theoretical arguments in favour of fixed rates. It adds piquancy that these arguments came from that bastion of flexible exchange rates, the University of Chicago.