The study looked at how exchange rate volatility changed before and after countries switched to inflation targeting. They focused on four Asian countries after the 1997 financial crisis. The results showed that exchange rates were more stable after inflation targeting was adopted. The exchange rate was more stable in the long term but less stable in the short term. The study did not find evidence that adopting flexible exchange rates and inflation targeting increased exchange rate volatility. Monetary policy decisions can affect exchange rate volatility, but the effects differ between countries.