If a country's central bank seeks to stabalize the price level and if nominal shocks from abroad are important,than

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When a country's central bank seeks to stabilize the price level and nominal shocks from abroad are important, a flexible exchange rate is preferable to a fixed exchange rate. This is because a fixed exchange rate means the country will have to adjust its monetary policy to maintain the exchange rate, potentially leading to instability in prices. With a flexible exchange rate, the central bank can adjust its monetary policy to combat any shocks to the economy, without having to worry about maintaining a specific exchange rate.

If a Country's Central Bank Seeks to Stabalize the Price