This doctoral dissertation examines the dynamics of exchange rates and the mechanisms through which their fluctuations are transmitted to the economy, with an emphasis on their effects on inflation and economic growth. Particular emphasis is placed on the role of the nature of the underlying macroeconomic shocks that cause exchange rate movements, as well as on differences in outcomes depending on the transmission channels. In addition, the dissertation analyzes the economic consequences of the imposition of tariffs by the United States on Eurozone countries, contributing to the understanding of international trade and monetary interactions in today’s globalized environment.