Contagion


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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 examples are the conjectured contagion in East Asian markets beginning in July 1997 when the Thai currency devalued and the impact across many emerging markets of the Russian default. Contagion is difficult to identify because you need some sort of measure of the expected correlation. It is complicated because correlations are known to change through time, for example, see Erb, Harvey and Viskanta's article in the 1994 Financial Analysts Journal. In periods of negative returns, correlations (and volatility) are known to increase, so what might appear to be excessive may not be contagion.

Contagion

A recession or economic crisis that begins in one country and extends to others. For example, the late 2000s recession began with a large number of defaults on subprime mortgages in the United States. However, because investors worldwide invested in mortgage-backed securities backed by those mortgages, it affected portfolios and funds internationally and became a global meltdown. See also: Great Recession.
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According to Moody's Investor Services, Philippine banks are safe from a contagion.
These guidelines suggest that the media not give a great deal of attention to the phenomenon of suicide, and they begin with the assertion that "suicide contagion is real.
The watchdog, which coordinates supervision of banks across the EU, said direct contagion from the Greek crisis is minimal, with little sign of indirect contagion, such as large investor withdrawals from funds.
However, in a more severe contagion scenario where vulnerable Eurozone countries such as Spain, Portugal and even Italy could be impacted by contagion and investor doubts about whether these countries might also eventually exit the Eurozone, the euro could depreciate more sharply.
Before the ECB's decision, contagion from Greece was a genuine threat.
Dr Paltalidis said: "The results give a vivid picture of financial contagion and the domino effect in the banking sector.
Compassion & Choices' sensationalizing of this woman's assisted suicide obviously benefited the organization with massive donations, but it was a disaster in terms of suicide contagion," said MCCL Executive Director Scott Fischbach.
The ability to avoid contagion from this is considerable if not overwhelming and I would lead towards the latter.
The paper outlines the array of government weapons that were deployed during the 2008 crisis to deal with contagion, including an expansion of the Federal Reserve's role as lender of last resort, and the adoption of expanded guarantees of short-term creditors by the Treasury and the Federal Deposit Insurance Corporation (FDIC).
Emerging markets are decoupling from advanced markets, but as their financial systems become more developed, the channels for contagion develop ever more strongly.
So that''s a result for the researchers, but the subsequent scrutiny they have faced produced some emotional contagion of its own.
Their conclusion: "Emotional states can be transferred to others via emotional contagion, leading people to experience the same emotions without their awareness.