Phenomenon of contagion as display of global economic dependence: problem of the macroeconomic adjusting
Keywords:
financial globalization, trade channel, capital channel, common creditor channel, cross-market movements in asset prices, currency/financial contagion, macroeconomic regulations, fundamental factorsAbstract
The paper examines global-scale effects of trade channels and capital flows in crises transmission. It reveals the correlation between a country’s integration in the world capital markets and its’ vulnerability to crisis developments. It includes the analysis of coordination and cooperation role in enhancing instability. During times of crisis, the ways in which shocks are transmitted do seem to differ, and these differences appear to be important. Empirical work has helped to identify the types of links and other macroeconomic conditions that can make a country vulnerable to contagion during crisis periods, although less is known about the importance of microeconomic considerations and institutional factors in propagating shocks. Such research could help identify characteristics that make countries vulnerable to contagion and could contribute to the development of specific policy prescriptions to reduce the risks of contagion, manage its impact, and help economies recover as efficiently as possible.References
Reinhart C. Capital Flows to Latin America: Is There Evidence of Contagion Effects? [Electronic resource] / C. Reinhart, S. Calvo. – Mode of access: http://mpra.ub.uni-muenchen.de/7124/1/
Morán P. The argentine crisis and its contagion effects on Latin American markets [Electronic resource] / P. Morán. – Mode of access: http://www.panorama.utalca.cl/dentro/wps/the_argentine.pdf
Holanda M.C. Contagion effect in Latin America big three [Electronic resource] / M.C. Holanda, M. Corrêa. – Mode of access: http://www.scielo.br/pdf/ee/v33n3/v33n3a04.pdf
Forbes K. Capital Flow Volatility and Contagion: A Focus on Asia [Electronic resource] / K. Forbes. – Mode of access: http://web.mit.edu/~kjforbes/www/Papers/Capital%20Flow%20Volatility%20%26%20Contagion-RBI-ADB%20Conference-11-12-12.pdf
Yang T. Crisis, Contagion, and East Asian Stock Markets [Electronic resource] / T. Yang, J.J. Lim. – Mode of access: http://www.jamus.name/research/RPBFMPpub.pdf
Seth R. Loan Flows, Contagion Effects, and East Asian Crisis [Electronic resource] / R. Seth, A. Sarkar, S.K. Mohanty. – Mode of access: http://www.newyorkfed.org/research/economists/sarkar/contagion.pdf
Dungey M. International Contagion Effects from the Russian Crisis and the LTCM Near-Collapse [Electronic resource] / M. Dungey, R. Fry, B. González-Hermosillo, V. Martin. – Mode of access: http://www.imf.org/external/pubs/ft/wp/2002/wp0274.pdf
Dornbusch R. Contagion: Understanding How It Spreads [Electronic resource] / R. Dornbusch, Y.C. Park, S. Claessens. – Mode of access: http://www1.fee.uva.nl/fm/PAPeRS/Claessens/Contagion_WBRO.pdf
Dungey M. International Financial Contagion: What Do We Know? [Electronic resource] / M. Dungey, D.N. Tambakis. – Mode of access: http://www-cfap.jbs.cam.ac.uk/publications/downloads/wp09.pdf
Aklin M. Information, Transparency, and the Contagion of Financial Crises [Electronic resource] / M. Aklin. – Mode of access: https://files.nyu.edu/ma1896/public/Publications_files/AklinCrisisDiff.pdf
Рудый К.В. Финансовые кризисы: теория, история, политика / К.В. Рудый. – М.: Новое знание, 2003. – 399 с.
Gropp R. Cross-border bank contagion in Europe [Electronic resource] / R. Gropp, M. Lo Duca, J. Vesala // European Central Bank. – Mode of access: http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp662.pdf
Masson P. Contagion: Monsoonal E¬ects, Spillovers, and Jumps Between Multiple Equilibria / P. Masson // IMF Working Paper. – 1998. – No.142.
Резнікова Н.В. Роль каналів торгівлі та руху капіталів в кризовій трансмісії: регіональний та глобальний вектори / Н.В. Резнікова, М.М. Відякіна // Проблемы развития внешнеэкономических связей и привлечения иностранных инвестиций: региональный аспект: сб. науч. тр. – Донецк: ДонНУ, 2013. – Т.1. – С. 321-323
Greenwood R. Vulnerable Banks [Electronic resource] / R. Greenwood, A. Landier, D. Thesmar. // European Central Bank. – Mode of access: http://www.scor.com/images/stories/pdf/library/chairscor/chairtse_vulnerablebanks.pdf
Van Wincoop E. International Financial Contagion Through Leveraged Financial Institutions / E. Van Wincoop // NBER Working Paper No. – 2011. - №17686. – Mode of access: http://www.nber.org/papers/w17686.pdf
Shin, H.S. Global Banking Glut and Loan Risk Premium / H.S. Shin // IMF Economic Review. – 2012. – Vol. 60. - № 2. – P. 155-192.
Alle F. Financial Crises: Theory and Evidence / F. Allen, A. Babus, E. Carletti // Annual Review of Financial Economics. – 2009. – Mode of access: http://finance.wharton.upenn.edu/~allenf/download/Vita/ARFE-Crises-08June09-final.pdf
