ABSTRACT
Eventually, the foreign exchange market stabilized, and the call rate was lowered to 8 percent by the end of September 1998. On September 30, the Bank of Korea lowered the call rate target by 100 basis points, signaling that the goal of monetary policy had shifted from stabilizing the currency’s value to boosting the economy. The call rate continued to be lowered until it hit historically low levels of 4 to 5 per - cent, inaugurating the era of “super-low interest rates”. The path of interest rates is shown in Figure 14.1 , together with the won/dollar exchange rate, and along with the corresponding variables in Thailand and the Philippines.
