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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While the rise in probability and extent of a financial contagion in 2007 and 2008 are consistent with the financial crisis, the result that an initial failure of a periphery node never leads to a financial contagion suggests that direct exposures through interbank lending alone may not provide a rich enough set of exposures to explain more than a small class of extreme financial contagions.
This common asset provides an additional exposure common to every bank, which increases the chance of a financial contagion. Consistent with the results of [4], we find that the addition of a common asset to direct exposures significantly increases both the probability and extent of financial contagions.
Caption: Figure 4: Contagions with Direct Exposures Only.
In this paper, we test the existence of systematic risk contagion within the Chinese interbank market and the antirisk ability of the Chinese interbank market from the perspective of risk sharing.
Section 2 reviews the literature on financial contagion and risk sharing on the interbank market.
They think in the risk of a particular systemic event, a sudden and unexpected failure of a bank where contagion is contained to the payment system, that is, which can be rather low.
In the field of psychology and sociology, the behavior of emotional contagion has been studied in many papers [6, 7].
As we all know, social networks are very complex [14-17], and the research of the complex networks is also the new trend of research on emotion contagion [18-20].
He said that with mathematical models made out of the responses, researchers can observe how social contagion networks interact with better-known biological contagion networks.
The other - Aaron Lynch's Thought Contagion: How Belief Spreads Through Society - emphasizes ideology.
That engine is more powerful than any of the viral ideas whose contagion is charted in Lynch's apologetic for memetics.
Rio Branco's is an art of contamination, contagion, and corrosion, but also of resistance and transcendence.