The article looks at how inflation in Chile was affected by a drop in the value of the peso from 2013 to 2015. The study found that the inflation rate went up a lot because of the peso's decrease in value. Prices for goods that are not traded internationally went up even more, making the overall inflation rate higher. However, wages did not have as big of an impact on inflation. If the peso had not decreased in value, inflation would have stayed within the target range set by the central bank. The study also showed that when the central bank raises interest rates in response to a drop in the peso's value, it can hurt the economy by reducing output. But, if inflation expectations stay stable, the central bank can still help the economy during these times.