Contagion : Monsoonal Effects, Spillovers, and Jumps Between Multiple Equilibria

Author/Editor:

Paul R Masson

Publication Date:

September 1, 1998

Electronic Access:

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Disclaimer: This Working 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:

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. 98/142

Subject:

English

Publication Date:

September 1, 1998

ISBN/ISSN:

9781451856224/1018-5941

Stock No:

WPIEA1421998

Format:

Paper

Pages:

32

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