The study looked at how changes in foreign exchange rates, foreign interest rates, and inflation expectations affect the demand for money in different countries. By analyzing data from Canada, the United States, the United Kingdom, and Germany from 1960 to 1975, the researchers found that foreign monetary developments have a significant impact on the demand for money. Contrary to traditional beliefs, the demand for real cash balances is not unresponsive to changes in foreign financial conditions, and remains stable even during times of international monetary crises.