The paper looks at what factors affect how much exchange rates change. They used data from the IMF about how foreign exchange markets are set up. They found that when markets are run by many dealers, rules limit the use of local money by foreigners, countries follow certain international agreements, and banks have limits on how much foreign money they can hold, exchange rates change less. This supports earlier findings that how the economy is doing and what kind of exchange rate system a country uses also affect how much exchange rates move.