The study looked at how different types of monetary policies affect exchange rates. They found that when a country's monetary policy is relaxed, its currency tends to decrease in value. This holds true for both traditional and unconventional monetary policy periods. The researchers used a unique method to identify these policy changes and found that the effects can vary depending on how they impact people's expectations about future interest rates and economic uncertainty. Overall, the study supports the idea that easing monetary policy leads to a drop in a country's currency value, in line with Dornbusch's overshooting hypothesis.