Financial contagion

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Financial contagion refers to the phenomenon when one country's economy is negatively affected because of changes in the asset prices of another country's financial market.

Contents 1 Causes 2 Examples 3 See also 4 External links

[edit] Causes

There are many contentions as to the cause(s) of financial contagion; critics claim that it is the result of a form of economic imperialism. However, others point out that the global economic system results in a series of interdependencies which make contagion inevitable during a particular country's financial troubles.

[edit] Examples

One particular example of this can be seen during the Asian financial crisis of the late 1990s. A more recent crisis where disruptions quickly spread into other areas of financial markets is the Subprime mortgage financial crisis in August 2007.

[edit] See also

• Financial crisis
• Stock market crash
• Flight-to-Liquidity

[edit] External links

• World Bank
• about.com article