The article discusses how changes in exchange rates and price levels affect the economy, particularly in Mexico. By studying different economic models, the researchers show that indexation to exchange rates can help reduce output losses during disinflation. They also highlight the importance of factors like nominal rigidity and price controls in influencing real economic effects. Additionally, the article explores the impact of trade liberalization and exchange rate policies on Mexico's trade deficit and inflation costs. Ultimately, the government aims to minimize inflation costs while determining the optimal exchange rate strategy.