Sticky-Price Monetary Approach/Overshooting was proposed by American economist Rudiger Dornbusch in the 1970s. Also known as the sticky price monetary analysis method of exchange rate determination, the so-called overshoot usually refers to the short-term response of a variable to a given disturbance that exceeds its long-term stable equilibrium value and is thus followed by an opposite adjustment. The reason for this phenomenon is that prices in the commodity market are "sticky" or "laggy". The so-called sticky price means that the commodity price is stuck in the short term, but as time goes by, the price level will gradually change until it reaches its new long-term equilibrium value.

The exchange rate overshoot model assumes that money demand remains unchanged, which means that money demand will not have an impact on the exchange rate. However, in practice, short-term fluctuations in the actual exchange rate often affect the current account, which in turn affects the current account. It will further affect a country's total assets, thereby affecting currency demand, which will lead to corresponding changes in the exchange rate. However, the overshoot model based on monetary model analysis does not analyze this issue.

As a stock theory, it ignores the analysis of balance of payments flows. Therefore, when using the overshoot model to analyze practical problems, attention should also be paid to the use of balance of payments flow analysis. Through the complementary effects of these two methods, we can deepen our understanding of the problem.

The overshoot model implicitly assumes that capital is completely free to flow and the exchange rate system is completely free to float. Under such conditions, excessive fluctuations in the foreign exchange market caused by overshooting of the exchange rate will inevitably bring impact and damage to a country's economy and even the global financial market. In order to avoid shocks and damage, the government will inevitably manage and intervene in capital flows and exchange rate fluctuations. Therefore, the above assumptions cannot be fully realized in reality.