The article explores how exchange rates and current accounts affect each other. They found that when a country's currency gets stronger, its current account usually gets worse. This relationship is mainly one-way, with exchange rates influencing current accounts. However, short-term data suggests that trade balances don't adjust as often, indicating that valuation effects also play a role. Across countries, trends in exchange rates and current accounts show similar patterns in the long run, which is important for understanding global imbalances.