Assume that you are an economic advisor and your focus is on understanding the different types of

Question:

Assume that you are an economic advisor and your focus is on understanding the different types of systems. You have been hired to understand the shifts in monetary policy and their influence on monetary policy. The only causes of fluctuations in stock prices are unexpected shifts in monetary policies. Now, your task is to explain whether a fixed or floating system would cause greater gains from international asset trade. In your answer, focus on the change in policy with regard to monetary policy and its influence on exchange rates.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...