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Notes on contagion

Reinhart, Carmen and Kaminsky, Graciela and Goldstein, Morris (2000): Notes on contagion. Published in: Assessing Financial Vulnerability: An Early Warning System for Emerging Markets, Institute for International Economics (2000)

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Abstract

This note reviews the theories as to why financial crises spill over across national boundaries. We discuss alternative frameworks ranging from bilateral trade links to more complex financial interconnections via banks and other investors. We review the evidence on which channels of contagion mattered most in the numerous financial crises episodes of the 1990s.

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