The study looked at how different exchange rate systems affect the impact of government spending on the economy. They used data from OECD countries and a model to analyze the effects. The results show that government spending has a bigger effect in countries with fixed exchange rates compared to those with floating rates, but the difference is not as big as previously thought. They also found that the traditional way of thinking about how exchange rates affect the economy might not be entirely accurate. Overall, the findings support a different economic model that explains the evidence better.