proposed contagion mechanism applies generally in global coordination games and can also be applied to bank runs, sovereign … attacks via heightened strategic uncertainty among speculators. Contagion occurs even if speculators learn that there is no … exposure. Our new contagion mechanism offers a compelling explanation for the 1997 Asian currency crisis and the 1998 Russian …

We develop an operational model of information contagion and show how it may be integrated into a mainstream, top … beliefs of secondary market investors and the coordination failure between the creditors of financial institutions. Pessimism … quantify this contagion channel in the context of the Bank of Canada's model of the Canadian banking system and a stress …

We design a laboratory experiment to test the importance of wealth as a channel for financial contagion across markets … markets, which allows us to disentangle the wealth effect from other sources of financial contagion. We provide evidence of … contagion due to a wealth effect when investors have completely diversified portfolios. In this treatment, for certain ranges of …

This chapter studies how incomplete information helps accommodate frictions in coordination, leading to novel insights … knowledge; the possibility of operationalizing the notions of “coordination failure” and “animal spirits” in a manner that …

This chapter studies how incomplete information helps accommodate frictions in coordination, leading to novel insights … knowledge; the possibility of operationalizing the notions of “coordination failure” and “animal spirits” in a manner that …

proposed contagion mechanism applies generally in global coordination games and can also be applied to bank runs, sovereign … attacks via heightened strategic uncertainty among speculators. Contagion occurs even if speculators learn that there is no … exposure. Our new contagion mechanism offers a compelling explanation for the 1997 Asian currency crisis and the 1998 Russian …