Financial contagion – the situation in which liquidity or insolvency risk is transmitted from one financial institution to another – is viewed by policymakers and academics as a key source of systemic risk in the banking sector.
Exploring the transmission channels of contagious bank runs
Martin Brown, Stefan Trautmann, Razvan Vlahu, 10 April 2014
Contagion in Europe: Evidence from the sovereign debt crisis
Paolo Manasse, Luca Zavalloni, 25 June 2012
"Contagion" is today's buzzword (de Haan and Mink 2012, Manasse and Trigilia 2011).
Determinants of banking system fragility: A regional perspective
Hans Degryse, Muhammad Ather Elahi, María Fabiana Penas, 21 March 2012
It is well known that banks face shocks both on their asset and liability side. A shock that initially affects one institution can become systemic and infect the larger local economy.
Capping interest rates to stop contagion in the Eurozone
Bernard Delbecque, 17 October 2011
A straightforward solution to stop contagion would be to appoint the ECB as a lender of last resort in the government bond markets (Wyplosz 2011a). By making it clear that it is fully committed to exert this function, the ECB would restore confidence in the markets.
The fear of contagion in Europe
Paolo Manasse, Giulio Trigilia, 6 July 2011
What to do about Greece? So far, much of the debate has split into two camps:
Sovereign Default Risk and Bank Fragility in Financially Integrated Economies
Olivier Jeanne, Patrick Bolton, 25 April 2011
Understanding and quantifying contagion
Harald Hau, Choong Tze Chua, Sandy Lai, 5 February 2011
Contagion is one of the more elusive concepts in the current debate about the financial crisis. Indeed, the logic behind it is often unclear.
Ireland’s rescue package: Disaster for Ireland, bad omen for the Eurozone
Barry Eichengreen, 3 December 2010
The Irish “rescue package” finalised over the weekend is a disaster. You can say one thing for the European Commission, the ECB, and the German government – they never miss an opportunity to make things worse.
Prakash Kannan, Friederike (Fritzi) Koehler-Geib, 3 December 2009
The “subprime crisis” became the “global crisis” when Lehman Brothers was allowed to collapse. The 2007 financial shock, which was limited to a handful of G7 nations, mutated into a full-blown global economic crisis in September 2008.
Searching for international contagion in the 2008 financial crisis
Andrew K Rose, Mark M. Spiegel, 3 October 2009
The roots of the 2008 global financial crisis surely lie in the US real estate bubble, at least in part. After the US real estate market peaked in 2006, mortgage foreclosures began to rise, especially for subprime borrowers. Accordingly, the value of these mortgages – often pooled together and sold off as pools of securitised assets – began to fall.
- Secular stagnation: Facts, causes, and cures – a new Vox eBookTeulings, Baldwin
- Can large primary surpluses solve Europe’s debt problem?Eichengreen, Panizza
- The unrecognised benefits of grade inflationBoleslavsky, Cotton
- The US manufacturing base is surprisingly strongMoran, Oldenski
- Italian growth: New recession or six-year decline?Frankel
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
CEPR Policy Research
- The buyer margins of firms' exportsCarballo, Ottaviano, Volpe
- Commodity and Equity Markets: Some Stylized Facts from a Copula ApproachDelatte, Lopez
- Ethnic Unemployment Rates and Frictional MarketsGobillon, Rupert, Wasmer
- Finance and Poverty: Evidence from IndiaAyyagari, Beck, Hoseini
- The Manipulation of Basel Risk-WeightsMariathasan, Merrouche
- The economics of Scottish independence in an interdependent worldHughes Hallett
- Making city lights shine brighterYusuf, Leipziger
- The euro in the 'currency war'Bénassy-Quéré, Martin
- The roots of shadow bankingPerotti
- What’s wrong with Europe?Baldini, Manasse
- Corporate Finance Theory Symposium19 - 20 September 2014 / Cambridge / Judge Business School, Cambridge University
- International Trade, Finance, and Macroeconomics: Research Frontiers and Challenges for Policy18 - 19 December 2014 / The Bank of England, London / The Bank of England, Centre for Macroeconomics and CEPR