Financial Contagion

While the phrase financial contagion may seem like a straightforward way to explain the spread of financial distress from one firm, market, asset class, nation, or geographical region to others, the reality is that this concept is much more complex than its definition. That's why Robert Kolb, one of today's most respected academics and editor of the Robert W. Kolb Series in Finance, has created Financial Contagion. Consisting of contributed chapters by specialists drawn from top universities and key international financial institutions-including central banks, the International Monetary Fund, and the World Bank-this timely guide represents cutting-edge thinking about systemic risk. Divided into six comprehensive sections, each preceded by a brief essay describing the chapters in that section, this volume takes an in-depth look at the key themes surrounding financial contagion-including correlation between or among affected domains, the avenues by which financial difficulty is transmitted, and the speed of spreading financial and economic distress. It also addresses how understanding these issues is of vital importance for the world's current and future economy. Along the way, Financial Contagion: Details the many dimensions of contagion in thefinancial crisis of 2007-2009 Provides a conceptual overview of the nature of contagion and the methods for identifying contagious episodes Explores the question of contagion in the Asian financial crisis of 1997, tracing the agony of economic distress from the streets of Bangkok to the New York Federal Reserve Bank Examines the phenomenon of contagion inemerging markets as well as the effect of contagion from large economies to emerging countries Discusses regional contagion, and addresses instances of contagion that have occurred betweentwo countries through trade or financial linkages Highlights examples of contagion within a singleeconomy Understanding the various issues associated with financial contagion has become essential, especially with the recent episodes we've encountered, and in preparation for future crises we will face. Engaging and informative, Financial Contagion puts this concept in perspective and will put you in a better position to understand and assess the risks, costs, and consequences of financially catastrophic events.