financial contagion


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Financial Contagion

A negative occurrence in one market, industry, or country that impacts other markets, industries, or countries. For example, problems in the U.S. financial markets starting in 2007 spread to other industries quickly and by 2008 had become a global financial crisis. Likewise, Japan's financial crisis in the 1990s had repercussions all over East Asia and elsewhere. See also: Globalization.

financial contagion

A financial problem that spreads among companies or regions. For example, Russia's 1998 default triggered sharp declines in the market values of debt issued by emerging countries.
References in periodicals archive ?
Limited financial integration in the global financial system has also helped protect the Egyptian economy from financial contagion.
Once the financial contagion reached credit unions, we suspected that many struggling credit unions would consider their annual Filene contributions line item discretionary.
The financial contagion flowing from Greece into the rest of the euro zone has a familiar ring in Latin America and the Caribbean.
It took down iBanks and banks and the financial contagion set off a global recession.
(2003) What Is International Financial Contagion?, International Finance Vol.
The economies in the Middle East and North Africa are recovering from the impact of financial contagion, and green shoots are beginning to appear.
They argue that because of the space-temporal characteristic of survival models, it is feasible to combine idiosyncratic country effects and time effects, which in turn are tied to financial contagion.
From there, the financial contagion had spread throughout the galaxy and even Klingons, the word was, were scrimping on their previously lavish bloodworm platters at warrior feasts.
A few years back many people would have said that improvements in financial engineering had done much to tame the business cycle and limit the risk of financial contagion."
Mir-Kazemi said use of national currencies in trade and business transactions could protect Turkey and Iran financial contagion risk related with the global economic crisis.
Algeria appears insulated from direct financial contagion given the predominantly public financial sector, minimal external indebtedness, and prudent management of international reserves.
Financial contagion is spreading throughout the world at the speed of a 'flu pandemic.
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