The study looked at how real exchange rates behave in the long term using data from 67 countries. They found a strong connection between real exchange rates, foreign assets, productivity, and terms of trade. This relationship held true for all countries, regardless of income or capital controls. The results matched what was expected based on previous research. When looking at high-income countries with low capital controls, pooling the data to find a common relationship was valid. The oil crisis in 1973 caused a significant change for these countries. Overall, deviations from the expected values were large and lasted a long time, with estimates falling within a common range found in other studies.