Contagion: Monsoonal Effects, Spillovers, and Jumps Between Multiple Equilibria
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Summary:
Several concepts of contagion are distinguished. It is argued that only models that admit of multiple equilibria are capable of producing true contagion. A simple balance of payments model is presented to illustrate that phenomenon, and some back-of-the-envelope calculations assess its relevance to the coincidence of emerging market crises in 1994–95 and in 1997.
Series:
Working Paper No. 1998/142
Subject:
Currencies Emerging and frontier financial markets Exchange rates External debt Financial markets Foreign exchange International trade Money Trade balance
English
Publication Date:
September 1, 1998
ISBN/ISSN:
9781451856224/1018-5941
Stock No:
WPIEA1421998
Pages:
32
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