Subprime Mortgage Crisis and the Exchange Rate Channel: Evidence from Six Countries of the Zone Euro-Med

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DOI: 10.4236/am.2017.811118    2,800 Downloads   3,496 Views  

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.

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Hachicha, A. and Hachicha, F. (2017) Subprime Mortgage Crisis and the Exchange Rate Channel: Evidence from Six Countries of the Zone Euro-Med. Applied Mathematics, 8, 1619-1647. doi: 10.4236/am.2017.811118.

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