The study looked at how the volatility of interest rates and exchange rates changed in Australia after the country switched to a floating exchange rate system in 1983. By analyzing data on various financial indicators, the researchers found that interest rates became less volatile while exchange rates became more volatile under the new system. This shift was mainly due to changes in the relationship between Australian interest rates and exchange rates, rather than external factors. Overall, the findings suggest that a floating exchange rate regime allows for a more stable monetary policy in Australia.