The article explores how money, government debt, and real shocks impact growth, inflation, and external balance in a small open economy. The researchers use a model that focuses on factors like interest rates, capital productivity, and investment costs to analyze these effects. They find that the growth rate is mainly influenced by the world real interest rate and domestic capital productivity, while consumption and external balance are affected by money, budget policies, and consumer preferences. Interestingly, monetary growth has significant effects on domestic consumption and the economy's foreign position, showing that money isn't neutral in this model.