They also underestimated the risks of financial contagion
and surges in migration flows.
The financial contagion
spread to the rest of Asia including the Philippines.
Thus, it is an important method to study financial risk relevance and financial contagion
Interbank Lending Patterns and Financial Contagion
Fears of financial contagion
spooked investors and sent them scurrying into the safety of government bonds, which helped push the benchmark 10-year Treasury yield to a fresh record low of 1.
The Europeans did not like it much when Lagarde told them their banks needed to be restructured or that they needed to build a firewall to protect against financial contagion
for example, Greece, Pakistan, Tunisia, and Ukraine - that are crucial to global stability.
Section 2 reviews the literature on financial contagion
and risk sharing on the interbank market.
cole Normale Superieure, France, and is the author of two books on financial contagion
, as well as a number of research articles on financial correlation.
Such a shock could come from failure to fully implement reforms (owing to reform fatigue, for instance) or from financial shocks and stronger-than envisaged financial linkages, which could make policy measures less effective in containing domestic financial contagion
, the report said.
Managing any outbreak of financial contagion
will require nimble and judicious use of available policy buffers.
Former Polish PM Donald Tusk, now head of the European Council, didn't mince words on the point: "I am really afraid of this ideological or political contagion, not financial contagion
, of the Greek crisis.
Moreover, we find that a linked network may be optimal ex ante even though linkages among reinsurers may spread financial contagion
, supporting the model's prediction regarding social capital benefits associated with network cohesion.