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Financial contagion

Index Financial contagion

Financial contagion refers to "the spread of market disturbances mostly on the downside from one country to the other, a process observed through co-movements in exchange rates, stock prices, sovereign spreads, and capital flows". [1]

72 relations: Argentina, Asset, Asymptote, Australia, Bank, Brazil, Cash flow, Cause of action, Coefficient, Collateralized debt obligation, Contagion, Correlation coefficient, Credit default swap, Credit rating agency, Creditor, Currency crisis, Currency war, Debt crisis, Debtor, Dependent and independent variables, Developing country, Economic globalization, European debt crisis, Extraordinary Popular Delusions and the Madness of Crowds, Financial crisis, Financial fragility, Financial institution, Financial intermediary, Financial market, Financial regulation, Fire sale, Flight-to-liquidity, General equilibrium theory, Google Books, Government, Great Depression, Great Depression in the United States, Hedge fund, Hong Kong, Indonesia, Information asymmetry, Investor, Journal of Economic Theory, Journal of Political Economy, Lehman Brothers, Liability (financial accounting), Liquidity preference, London Stock Exchange, Long-Term Capital Management, M. Hashem Pesaran, ..., Malaysia, Market liquidity, Napoleonic Wars, Philippines, Probability distribution, Profit (accounting), Quarterly Journal of Economics, South Korea, Standard error, Stock market crash, Subprime mortgage crisis, Systemic risk, Thai baht, Thailand, The Journal of Finance, United States, Uruguay, Variance, Vector autoregression, Viral phenomenon, Wall Street Crash of 1929, 1997 Asian financial crisis. Expand index (22 more) »

Argentina

Argentina, officially the Argentine Republic (República Argentina), is a federal republic located mostly in the southern half of South America.

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Asset

In financial accounting, an asset is an economic resource.

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Asymptote

In analytic geometry, an asymptote of a curve is a line such that the distance between the curve and the line approaches zero as one or both of the x or y coordinates tends to infinity.

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Australia

Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania and numerous smaller islands.

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Bank

A bank is a financial institution that accepts deposits from the public and creates credit.

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Brazil

Brazil (Brasil), officially the Federative Republic of Brazil (República Federativa do Brasil), is the largest country in both South America and Latin America.

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Cash flow

A cash flow describes a real or virtual movement of money.

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Cause of action

A cause of action, in law, is a set of facts sufficient to justify a right to sue to obtain money, property, or the enforcement of a right against another party.

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Coefficient

In mathematics, a coefficient is a multiplicative factor in some term of a polynomial, a series or any expression; it is usually a number, but may be any expression.

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Collateralized debt obligation

A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS).

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Contagion

Contagion may refer to.

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Correlation coefficient

A correlation coefficient is a numerical measure of some type of correlation, meaning a statistical relationship between two variables.

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Credit default swap

A credit default swap (CDS) is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default (by the debtor) or other credit event.

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Credit rating agency

A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely interest payments and the likelihood of default.

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Creditor

A creditor is a party (for example, person, organization, company, or government) that has a claim on the services of a second party.

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Currency crisis

A currency crisis is a situation in which serious doubt exists as to whether a country's central bank has sufficient foreign exchange reserves to maintain the country's fixed exchange rate.

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Currency war

Currency war, also known as competitive devaluations, is a condition in international affairs where countries seek to gain a trade advantage over other countries by causing the exchange rate of their currency to fall in relation to other currencies.

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Debt crisis

Debt crisis is the general term for a proliferation of massive public debt relative to tax revenues, especially in reference to Latin American countries during the 1980s, the United States and the European Union since the mid-2000s, and the Chinese debt crises of 2015.

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Debtor

A debtor is an entity that owes a debt to another entity.

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Dependent and independent variables

In mathematical modeling, statistical modeling and experimental sciences, the values of dependent variables depend on the values of independent variables.

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Developing country

A developing country (or a low and middle income country (LMIC), less developed country, less economically developed country (LEDC), underdeveloped country) is a country with a less developed industrial base and a low Human Development Index (HDI) relative to other countries.

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Economic globalization

Economic globalization is one of the three main dimensions of globalization commonly found in academic literature, with the two others being political globalization and cultural globalization, as well as the general term of globalization.

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European debt crisis

The European debt crisis (often also referred to as the Eurozone crisis or the European sovereign debt crisis) is a multi-year debt crisis that has been taking place in the European Union since the end of 2009.

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Extraordinary Popular Delusions and the Madness of Crowds

Extraordinary Popular Delusions and the Madness of Crowds is an early study of crowd psychology by Scottish journalist Charles Mackay, first published in 1841.

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Financial crisis

A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value.

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Financial fragility

Financial Fragility is the vulnerability of a financial system to a financial crisis.

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Financial institution

Financial institutions, otherwise known as banking institutions, are corporations which provide services as intermediaries of financial markets.

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Financial intermediary

A financial intermediary is an institution or individual that serves as a middleman among diverse parties in order to facilitate financial transactions.

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Financial market

A financial market is a market in which people trade financial securities and derivatives such as futures and options at low transaction costs.

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Financial regulation

Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system.

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Fire sale

A fire sale is the sale of goods at extremely discounted prices, typically when the seller faces bankruptcy.

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Flight-to-liquidity

A flight-to-liquidity is a financial market phenomenon occurring when investors sell what they perceive to be less liquid or higher risk investments, and purchase more liquid investments instead, such as US Treasuries.

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General equilibrium theory

In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium.

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Google Books

Google Books (previously known as Google Book Search and Google Print and by its codename Project Ocean) is a service from Google Inc. that searches the full text of books and magazines that Google has scanned, converted to text using optical character recognition (OCR), and stored in its digital database.

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Government

A government is the system or group of people governing an organized community, often a state.

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Great Depression

The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.

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Great Depression in the United States

The Great Depression began in August 1929, when the United States economy first went into an economic recession.

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Hedge fund

A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques.

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Hong Kong

Hong Kong (Chinese: 香港), officially the Hong Kong Special Administrative Region of the People's Republic of China, is an autonomous territory of China on the eastern side of the Pearl River estuary in East Asia.

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Indonesia

Indonesia (or; Indonesian), officially the Republic of Indonesia (Republik Indonesia), is a transcontinental unitary sovereign state located mainly in Southeast Asia, with some territories in Oceania.

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Information asymmetry

In contract theory and economics, information asymmetry deals with the study of decisions in transactions where one party has more or better information than the other.

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Investor

An investor is a person that allocates capital with the expectation of a future financial return.

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Journal of Economic Theory

The Journal of Economic Theory, often referred to as JET, is an important scholarly journal in the field of economics.

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Journal of Political Economy

The Journal of Political Economy is a bimonthly peer-reviewed academic journal published by the University of Chicago Press.

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Lehman Brothers

Lehman Brothers Holdings Inc. (former NYSE ticker symbol LEH) was a global financial services firm.

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Liability (financial accounting)

In financial accounting, a liability is defined as the future sacrifices of economic benefits that the entity is obliged to make to other entities as a result of past transactions or other past events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.

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Liquidity preference

In macroeconomic theory, liquidity preference is the demand for money, considered as liquidity.

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London Stock Exchange

The London Stock Exchange (LSE) is a stock exchange located in the City of London, England.

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Long-Term Capital Management

Long-Term Capital Management L.P. (LTCM) was a hedge fund management firmA financial History of the United States Volume II: 1970–2001, Jerry W. Markham, Chapter 5: "Bank Consolidation", M. E. Sharpe, Inc., 2002 based in Greenwich, Connecticut that used absolute-return trading strategies combined with high financial leverage.

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M. Hashem Pesaran

Mohammad Hashem Pesaran (born 30 March 1946) is a British-Iranian economist.

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Malaysia

Malaysia is a federal constitutional monarchy in Southeast Asia.

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Market liquidity

In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price.

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Napoleonic Wars

The Napoleonic Wars (1803–1815) were a series of major conflicts pitting the French Empire and its allies, led by Napoleon I, against a fluctuating array of European powers formed into various coalitions, financed and usually led by the United Kingdom.

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Philippines

The Philippines (Pilipinas or Filipinas), officially the Republic of the Philippines (Republika ng Pilipinas), is a unitary sovereign and archipelagic country in Southeast Asia.

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Probability distribution

In probability theory and statistics, a probability distribution is a mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.

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Profit (accounting)

Profit, in accounting, is an income distributed to the owner in a profitable market production process (business).

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Quarterly Journal of Economics

The Quarterly Journal of Economics is a peer-reviewed academic journal published by the Oxford University Press.

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South Korea

South Korea, officially the Republic of Korea (대한민국; Hanja: 大韓民國; Daehan Minguk,; lit. "The Great Country of the Han People"), is a country in East Asia, constituting the southern part of the Korean Peninsula and lying east to the Asian mainland.

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Standard error

The standard error (SE) of a statistic (usually an estimate of a parameter) is the standard deviation of its sampling distribution or an estimate of that standard deviation.

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Stock market crash

A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth.

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Subprime mortgage crisis

The United States subprime mortgage crisis was a nationwide banking emergency, occurring between 2007 and 2010, that contributed to the U.S. recession of December 2007 – June 2009.

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Systemic risk

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system.

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Thai baht

The baht (บาท,; sign: ฿; code: THB) is the currency of Thailand.

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Thailand

Thailand, officially the Kingdom of Thailand and formerly known as Siam, is a unitary state at the center of the Southeast Asian Indochinese peninsula composed of 76 provinces.

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The Journal of Finance

The Journal of Finance is a peer-reviewed academic journal published by Wiley-Blackwell on behalf of the American Finance Association.

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United States

The United States of America (USA), commonly known as the United States (U.S.) or America, is a federal republic composed of 50 states, a federal district, five major self-governing territories, and various possessions.

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Uruguay

Uruguay, officially the Oriental Republic of Uruguay (República Oriental del Uruguay), is a sovereign state in the southeastern region of South America.

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Variance

In probability theory and statistics, variance is the expectation of the squared deviation of a random variable from its mean.

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Vector autoregression

Vector autoregression (VAR) is a stochastic process model used to capture the linear interdependencies among multiple time series.

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Viral phenomenon

Viral phenomena are objects or patterns that are able to replicate themselves or convert other objects into copies of themselves when these objects are exposed to them.

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Wall Street Crash of 1929

The Wall Street Crash of 1929, also known as Black Tuesday (October 29), the Great Crash, or the Stock Market Crash of 1929, began on October 24, 1929 ("Black Thursday"), and was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its after effects.

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1997 Asian financial crisis

The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.

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References

[1] https://en.wikipedia.org/wiki/Financial_contagion

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