The study looked at how allowing interest rates to change freely affects how well monetary policy works in an open economy. By using a specific economic model, the researchers found that letting interest rates be set by the market can help control inflation. When interest rates go up, the impact of both local and foreign monetary policy on the economy weakens. Also, when interest rates rise, the economy benefits from local technology improvements. As interest rates increase, the impact of technology on economic ups and downs becomes more important, while the effect of monetary policy on inflation changes becomes more significant. Overall, as interest rates go up, the losses to society decrease until they reach a minimum point, suggesting an optimal level for interest rates.