Recent research on New Keynesian, open-economy models has provided new insights into how monetary policy works. These models help us understand how economic shocks spread between countries, how exchange rates affect prices, and how different pricing rules impact optimal monetary policy. While these models haven't solved all the mysteries of global economics, they give us a framework to ask important questions about how central banks should respond to changes in exchange rates. More empirical research is needed to test and refine these models for real-world use.