Ahnert, Toni; Bertsch, Christoph - Sveriges Riksbank - 2013
A financial crisis in one region is a wake-up call for investors in other regions. If the correlation across regional … informed investors. This novel wake-up call theory of contagion explains how currency crises, bank runs, and debt crises spread … across regions without a common investor base, ex-post correlated fundamentals or interconnectedness. Our wake-up call theory …