Contagion: Monsoonal Effects, Spillovers, and Jumps Between Multiple Equilibria
- 1 January 1998
- journal article
- Published by International Monetary Fund (IMF) in IMF Working Papers
- Vol. 98 (142)
- https://doi.org/10.5089/9781451856224.001
Abstract
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.Keywords
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