Noussair, Charles; Xu, Yilong - In: Journal of Economic Studies 42 (2015) 6, pp. 1029-1055
Purpose – The purpose of this paper is to consider whether asymmetric information about correlations between assets can induce financial contagion. Contagion, unjustified by fundamentals, would arise if participants react in one market to uninformative trades in the other market that actually...