The article explores how monetary policy should respond to too much money coming into a country, which makes the currency stronger and increases the external deficit. By using a common economic model, the researchers found that the best monetary policy depends on how much the exchange rate affects import prices. If the exchange rate has a big impact on prices, the best policy is to boost the economy. But if prices don't change much with the exchange rate, the best policy is to slow down the economy. Sometimes, too much money coming in can actually make the currency weaker instead of stronger. In that case, the best policy is always to boost the economy to help local spending.