If a country wants to make extensive use of monetary policy to address domestic issues, then that country should adopt a floating exchange-rate.

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When a country adopts a floating exchange-rate system, it allows the value of its currency to be determined by market forces, such as supply and demand. This means that the central bank can use monetary policy to influence domestic issues, such as inflation, without worrying about how it will affect the exchange rate. In contrast, a fixed exchange-rate system constrains a country's ability to use monetary policy because changes in interest rates, for example, can affect the exchange rate and potentially harm trade competitiveness.

If a Country Wants to Make Extensive Use of Monetary