Financial Contagion: Myth or Reality?

Reint Gropp and Philipp Hartmann

Research Bulletin, 2004, vol. 1, 2-5

Abstract: Recent research has very much improved our understanding of financial contagion, stressing the propagation of extreme negative outcomes, the distinction from common shocks and the increase in interdependence compared to normal times. The findings suggest that crises in international financial markets may sometimes be contagious, although meltdowns affecting different asset classes and continents are extremely rare. The risk of cross-border bank contagion in the European Union has increased during the late 1990s. Hence, macro-prudential surveillance increasingly needs to adopt a pan-European perspective. JEL Classification: G1

Keywords: financial; contagion (search for similar items in EconPapers)
Date: 2004-11
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.ecb.europa.eu/pub/pdf/other/researchbulletin01en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbrbu:2004:0001:1

Access Statistics for this article

More articles in Research Bulletin from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().