The study looked at how changes in interest rates and exchange rates affect borrowing in different currencies in Poland, the Czech Republic, and Hungary. When interest rates go up, people borrow more in foreign currency and less in domestic currency in Poland and Hungary. A drop in the value of the local currency initially reduces borrowing in foreign currency, but then borrowers switch to foreign currency loans over time. This shows that foreign currency borrowing can weaken the impact of changes in interest rates set by central banks.