Interest rate hikes raise won value in Korea, lower in US.
The article compares how different types of economic models predict the effects of changing interest rates on the value of the Korean currency. The researchers found that when interest rates go up, the Korean currency tends to increase in value according to some models, but decrease in value according to others. One model was better at predicting real-world data, while another was better at predicting exchange rates. The researchers suggest that more investigation is needed to understand why these differences occur.