The fiscal theory of the price level challenges the idea that money controls prices and exchange rates. It suggests that fiscal policies play a crucial role in determining these economic factors. The theory also offers reasons for limiting spending in a monetary union. The study reviews the main results and criticisms of this theory, focusing on how monetary and fiscal shocks affect the economy under a fiscal regime. It examines the factors influencing exchange rates and ways to address uncertainties in exchange rates when interest rates are fixed.