Contagion: Monsoonal Effects, Spillovers, and Jumps Between Multiple Equilibria

Paul Masson

No 1998/142, IMF Working Papers from International Monetary Fund

Abstract: Several concepts of contagion are distinguished. It is argued that only models that admit of multiple equilibria are capable of producing true contagion. A simple balance of payments model is presented to illustrate that phenomenon, and some back-of-the-envelope calculations assess its relevance to the coincidence of emerging market crises in 1994–95 and in 1997.

Keywords: WP; exchange rate; contagion; spillovers; multiple equilibria; U.S. dollar; devaluation risk; devaluation expectation; dollar exchange rate peg; emerging-market country; Emerging and frontier financial markets; Trade balance; Currencies; Exchange rates; Southeast Asia; East Asia (search for similar items in EconPapers)
Pages: 32
Date: 1998-09-01
References: Add references at CitEc
Citations: View citations in EconPapers (276)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=2755 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1998/142

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().