also on financial markets leading internationally to what is referred as contagion, that is co-movements among asset prices … which have been excessive respect to fundamentals. The term “contagion,” generally used in contrast to “interdependence … like. Although there is still wide disagreement among economists about what contagion is exactly and how it should be …

another country. Using this new approach, I revisit the sovereign risk contagion in the euro area. I find striking shifts in … market pricing functions for the sovereign bond spreads. Multi-country contagion plays a dominant role in driving such shifts …