On January 1, 1999, 11 of the 15 member countries of the European Union(EU) entered the third and final stage of European Economic and Monetary Union (EMU). Notwithstanding some minor and quickly resolved problems in the TARGET payments system and some volatility in overnight interest rates, the...

Despite the growing popularity of blaming 'contagion' for international financial crises, contagion remains an elusive concern. Without a clear understanding of financial contagion and the mechanisms through which it works, we can neither assess the problem nor design appropriate policy measures...

Despite the growing popularity of blaming "contagion" for international financial crises, contagion remains an elusive concern. Without a clear understanding of financial contagion and the mechanisms through which it works, we can neither assess the problem nor design appropriate policy measures...