The article discusses how exchange rates affect economic stability in open economies. The researchers suggest that fixed exchange rates may not always be the best option for stabilizing prices. They found that when people prefer local goods over imports, the real exchange rate can fluctuate with changes in trade terms. This means that monetary policies need to consider both domestic costs and exchange rate movements to be effective. The study shows that in more closed economies, optimal monetary rules tend to be similar, regardless of export market conditions.