Exploring the transmission channels of contagious bank runs

Martin Brown, Stefan Trautmann, Razvan Vlahu, 10 April 2014

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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.

Topics: Financial markets
Tags: bank runs, banking, banks, contagion, experimental economics, financial crisis, financial stability, global crisis, systemic risk

Contagion in Europe: Evidence from the sovereign debt crisis

Paolo Manasse, Luca Zavalloni, 25 June 2012

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"Contagion" is today's buzzword (de Haan and Mink 2012, Manasse and Trigilia 2011).

Topics: Europe's nations and regions, Global economy
Tags: contagion, Eurozone crisis

Determinants of banking system fragility: A regional perspective

Hans Degryse, Muhammad Ather Elahi, María Fabiana Penas, 21 March 2012

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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.

Topics: International finance
Tags: bank fragility, contagion

Capping interest rates to stop contagion in the Eurozone

Bernard Delbecque, 17 October 2011

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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.

Topics: EU institutions, EU policies
Tags: contagion, ECB, EFSF, Eurozone crisis

The fear of contagion in Europe

Paolo Manasse, Giulio Trigilia, 6 July 2011

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What to do about Greece? So far, much of the debate has split into two camps:

Topics: EU policies, Europe's nations and regions, Global crisis
Tags: contagion, Eurozone crisis, Greece, Lehman Brothers

Sovereign Default Risk and Bank Fragility in Financially Integrated Economies

Olivier Jeanne, Patrick Bolton, 25 April 2011

Vox users can download CEPR Discussion Paper 8358 for free here. To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.

Journalists are entitled to free DP downloads on request; please contact pressoffice@cepr.org. To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.

URL: www.cepr.org/DP8358
Topics: Financial markets, International finance, Macroeconomic policy
Tags: banking, collateral, contagion, default, Eurozone crisis, financial integration, government debt

Understanding and quantifying contagion

Harald Hau, Choong Tze Chua, Sandy Lai, 5 February 2011

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Contagion is one of the more elusive concepts in the current debate about the financial crisis. Indeed, the logic behind it is often unclear.

Topics: Europe's nations and regions, Global crisis, International finance
Tags: Bond market, contagion, Eurozone crisis

Ireland’s rescue package: Disaster for Ireland, bad omen for the Eurozone

Barry Eichengreen, 3 December 2010

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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.

Topics: EU policies, Global crisis
Tags: contagion, eurozone, Irish bailout

Finding contagion

Prakash Kannan, Friederike (Fritzi) Koehler-Geib, 3 December 2009

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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.

Topics: Global economy
Tags: contagion, global crisis, surprise

Searching for international contagion in the 2008 financial crisis

Andrew K Rose, Mark M. Spiegel, 3 October 2009

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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.

Topics: Global economy
Tags: contagion, global crisis

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