The paper sheds light on financial contagion within the Euro Area and Asia, and contagion from the Euro Area to Asia … empirical findings indicate the existence of contagion from the Euro Area to Asia, and reveal that contagion in the Euro Area is … more severe than in Asia. Applying the multinomial logit regression model, the paper also investigates how the macro …

arrangement is financially fragile. A small liquidity preference shock in one region can spread by contagion throughout the …