The article investigates if exchange rate misalignment causes major global trade imbalances. The researchers used data from ten countries with high trade deficits and surpluses from 2000 to 2016. They found that exchange rate misalignment only had mild and temporary effects on trade balances. Different countries responded differently to exchange rate misalignment, suggesting it is not the sole cause of trade imbalances. This study provides new insights into the relationship between exchange rates and trade imbalances.