Financial contagion

Financial contagion

Financial contagion refers to the phenomenon when one country's economy is negatively affected because of changes in the asset prices of another country's financial market.

Causes

There are many contentions as to the cause(s) of financial contagion; critics claim that it is the result of a form of economic imperialism. However, others point out that the global economic system results in a series of interdependencies which make contagion inevitable during a particular country's financial troubles.

Examples

One particular example of this can be seen during the Asian financial crisis of the late 1990s. A more recent crisis where disruptions quickly spread into other areas of financial markets is the subprime mortgage crisis in August 2007.

ee also

* Financial crisis
* Stock market crash
* Flight-to-Liquidity

External links

* [http://www1.worldbank.org/economicpolicy/managing%20volatility/contagion/ World Bank]
* [http://economics.about.com/cs/moffattentries/a/contagion.htm about.com article]


Wikimedia Foundation. 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Contagion — may refer to: In medicine Infectious disease, also known as contagious disease, with infection, or the infectious agent, also known as (a) contagion In media Batman: Contagion, a story arc in the Batman comic book series Contagion (novel), a… …   Wikipedia

  • Financial crisis — For the 2008–2010 crisis, see Subprime mortgage crisis , Late 2000s financial crisis and Late 2000s recession. Economics …   Wikipedia

  • Contagion-Effekt — Der Begriff Contagion Effekt (von engl. contagion – dt. Ansteckung, Seuche oder schädlicher Einfluss) beschreibt die Ansteckung bzw. die Übertragung einer Finanz und/oder Währungskrise auf scheinbar unbetroffene und unter Umständen geographisch… …   Deutsch Wikipedia

  • contagion — Excess correlation of delivering or bond returns. For example, under usual conditions we might observe a certain level of correlation of market returns. A period of contagion would be associated with much higher than expected correlation. Some… …   Financial and business terms

  • Financial market — Finance Financial markets Bond market …   Wikipedia

  • Financial Crisis of 2008 — ▪ 2009 Introduction by Joel Havemann       In 2008 the world economy faced its most dangerous crisis since the Great Depression of the 1930s. The contagion, which began in 2007 when sky high home prices in the United States finally turned… …   Universalium

  • Late-2000s financial crisis — The TED spread (in red) increased significantly during the financial crisis, reflecting an increase in perceived credit risk …   Wikipedia

  • 1997 Asian Financial Crisis — The Asian Financial Crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown (financial contagion). It is also commonly referred to as the IMF crisis. Overview The …   Wikipedia

  • Office of Financial Stability — The Office of Financial Stability is a new office within the Office of Domestic Finance of the United States Treasury created by the Emergency Economic Stabilization Act of 2008 to operate the Troubled Assets Relief Program.[1] OFS is headed by… …   Wikipedia

  • United States Consumer Financial Protection Bureau — U.S. Consumer Financial Protection Bureau CFPB Agency overview Formed July 21, 2011 Jurisdiction Federal government of the United States Headquarters Washington, D.C. Agency executive …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”