Vanishing Contagion?

 
Author/Editor: Didier, Tatiana ; Mauro, Paolo ; Schmukler, Sergio L.
 
Publication Date: January 01, 2006
 
Electronic Access: Free Full text (PDF file size is 408KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: While a number of emerging market crises were characterized by widespread contagion during the 1990s, more recent crises (notably, in Argentina) have been mostly contained within national borders. This has led some observers to wonder whether contagion might have become a feature of the past, with markets now better discriminating between countries with good and bad fundamentals. This paper argues that a prudent working assumption is that contagion has not vanished permanently. Available data do not seem to point to a disappearance of the main channels that contribute to transmitting crises across countries. Moreover, anticipation of the Argentine crisis by international investors may help explain the recent absence of contagion.
 
Series: Policy Discussion Paper No. 06/01
Subject(s): Financial crisis | Emerging markets

 
English
Publication Date: January 01, 2006
Format: Paper
Stock No: PPIEA2006001 Pages: 24
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
Please address any questions about this title to publications@imf.org