Developing countries face challenges in adjusting their economies in the short term, focusing on improving the current account and reducing inflation. The main reason for adjustment is often the fiscal deficit. Costs of adjustment can be divided into primary and secondary, with secondary costs arising from factors like failure to devalue or wage rigidity. Cutting expenses and devaluing currency impact different sectors of the economy. Addressing inflation requires replacing the inflation tax and adjusting prices. If the fiscal deficit remains high, improving the current account may lead to increased inflation, while reducing inflation may worsen the current account.