The article examines how different exchange rate systems affect economies using a model based on the US and Europe. It looks at the impact of money, productivity, and interest rates on exchange rates. The study shows that after the Bretton Woods system ended, exchange rate volatility increased, but this didn't significantly affect GDP volatility. The findings suggest that the rise in exchange rate volatility doesn't necessarily mean prices are inflexible. The model also indicates that US and European GDPs have been more closely linked since the end of Bretton Woods.