Mundell on China, the euro, and the dollar.

Supply-side sage Robert Mundell made recent comments on the world's Special Drawing Rights currency basket: "The SDR basket should be reformed this year and I propose the Chinese yuan be included in the basket," he said.

Regarding the dollar/yuan link:

"The dollar is strong now, and there has already been some problem with Chinese exports, it might be more risky if the situation continues."

"Nobody wants China to devalue the yuan, and China should not appreciate it, just keep it where it is," he added. "That's a responsible policy for the Asia area."

Referring to the sovereign debts crisis in Europe, Mundell, also "the father of the euro," said the currency, as the "counterpart of the dollar," would go forward and that the huge swings in the exchange rate of the dollar had greatly aggravated global economic instability.