The article explores how different factors affect exchange rates between two countries. It looks at how the use of money in asset transactions can impact exchange rates, with a higher share of money leading to a stronger exchange rate. It also discusses how uncertainty and liquidity shocks can cause exchange rates to fluctuate, even when the fundamental value remains stable. Additionally, the study suggests that taxes on foreign asset purchases can increase exchange rates, and the maturity structure of public debt can influence exchange rate movements.