The impact of the financial crisis on the Tunisian financial market The patterns of cross-border capital raised the effect on the developments of domestic markets and highlighted the differences between advanced and developing economies. One of the effects of this globalization is the introduction of the euro and the effect it had on the European and global capital markets by bringing into existence a currency area comparable in size to that of the United States. However, the globalization had also a downside resulted by the effects of the financial crises on foreign capital raisings during the 2007-09 global financial crisis. Financial globalization expanded the international capital markets to investors and firms all over the world. Foreign capital raisings by firms have increased substantially since the early 1990s in terms of equity as well as debt. The integration of financial markets has emphasized the rapid flow of capital across borders as well as magnifying
Introduction A job loss means a lower living standard in the present, anxiety about the future, and reduced self-esteem. A country that saves and invests a high fraction of its income enjoys more rapid growth in its capital stock and its GDP and a higher living standard. An even more obvious determinant of a country’s standard of living is the amount of unemployment it typically experiences. When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP. The problem of unemployment is usefully divided into two categories—the long-run problem and the short-run problem. The economy’s natural rate of unemployment refers to the amount of unemployment that the economy normally experiences. The designation natural does not imply that this rate of unemployment is desirable. Nor does it imply that it is constant over time. It merely means that this unemployment does not go away on its own even in the long-run. C ycl