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Subprime Mortgage Crisis and the Exchange Rate Channel: Evidence from Six Countries of the Zone Euro-Med
Department of Economic Development, Faculty of Economics and Management of Sfax, Sfax, Tunisia
Department of Finance, Institute of Higher Commercial Studies of Sfax, Tunisia
- 1 Department of Economic Development, Faculty of Economics and Management of Sfax, Sfax, Tunisia
- 2 Department of Finance, Institute of Higher Commercial Studies of Sfax, Tunisia
Applied Mathematics·Volume 08 (2017)·Pages 1619–1647·Published 1 November 2017·DOI10.4236/am.2017.811118
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Abstract
This article proposes to assess the impact of the subprime mortgage crisis on the exchange rate channel in 6 countries of the Euro-Med zone. To do this, our analysis is based on three evaluation methods that allow us to conclude that the exchange rate channel is better evaluated by the non-linear approach of the countries studied. Thus, the depreciation of the exchange rate adopted by the countries of the Med zone did worse macroeconomic stability and economic convergence.
KeywordsSubprime Mortgage CrisisExchange Rate ChannelEuro-Med ZoneThree Evaluation MethodsEconomic Convergence
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