The article explores how managing people's expectations about inflation can affect the economy. By studying the Czech Republic from 1999 to 2018, the researchers found that changes in exchange rates can strongly influence what people expect prices to do. People's expectations are mainly shaped by what actually happens with prices and what they thought would happen before. Other factors like economic growth, job prospects, money supply, oil prices, and government spending also play a role in shaping these expectations. This study sheds light on how exchange rates and inflation expectations can impact each other in a small open economy.