We propose a novel theory of financial contagion. We study global coordination games of regime change in two regions … region 2 that induces a re-assessment of local fundamentals. Contagion after a wake-up call can occur even if investors learn … attacks, bank runs, and debt crises, our theory of contagion is supported by existing evidence and generates a new testable …

fundamental and acquire information about the macro shock. Contagion can occur even after investors learn that region 2 has no ex …

fundamental and acquire information about the macro shock. Contagion can occur even after investors learn that region 2 has no ex …

We propose a novel theory of financial contagion. We study global coordination games of regime change in two regions … region 2 that induces a reassessment of local fundamentals. Contagion after a wake-up call can occur even if investors learn … attacks, bank runs and debt crises, our theory of contagion is supported by existing evidence and generates a new testable …

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 … 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 … proposed contagion mechanism applies generally in global coordination games and can also be applied to bank runs, sovereign …