The study looked at how monetary policy affects currency markets during stable economic times from 1999 to 2006. It found that monetary policy plays a big role in keeping currency markets stable. Even though arbitrage and monetary policy together explain a lot of the changes in exchange rates, the study suggests that arbitrage might not always lead to instability in currency markets, especially for certain types of currencies. Overall, the study shows that currency and money markets are closely connected, and that monetary policy helps reduce issues over time in currency markets.