The article compares fiscal and exchange rate devaluation to see which one helps the economy more. They used a model to study how these actions affect economic activity and the current account. Fiscal devaluation can help the economy by shifting the adjustment from cutting domestic spending to boosting exports. Both fiscal and exchange rate devaluation can support external adjustment and lessen the impact on the economy when prices and wages are inflexible. However, shifting taxes from labor to consumption, a common form of fiscal devaluation, has only a small effect on the economy.