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Several concepts of contagion are distinguished. It is argued that only models that admit of multiple equilibria are … capable of producing true contagion. A simple balance of payments model is presented to illustrate that phenomenon, and some …
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Capital flow volatility is a concern for macroeconomic and financial stability. Nonetheless, literature is scarce in this topic. Our paper sheds light on this issue in two dimensions. First, using quarterly data for 65 countries over the period 1970Q1-2016Q1, we construct three measures of...
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pronounced during volatile times. Portfolio rebalancing mechanisms are clearly important in explaining contagion patterns, even …
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latter are more sensitive to global factors and contagion …
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