Vanishing Contagion?

While a number of emerging market crises were characterized by widespread contagion during the 1990s, more recent crises (notably, in Argentina) have been mostly contained within national borders. This has led some observers to wonder whether contagion might have become a feature of the past, with m...

Full description

Main Author: Mauro, Paolo
Other Authors: Didier, Tatiana, Schmukler, Sergio L.
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2006, 2006
Series:IMF Policy Discussion Papers; Policy Discussion Paper
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Summary:While a number of emerging market crises were characterized by widespread contagion during the 1990s, more recent crises (notably, in Argentina) have been mostly contained within national borders. This has led some observers to wonder whether contagion might have become a feature of the past, with markets now better discriminating between countries with good and bad fundamentals. This paper argues that a prudent working assumption is that contagion has not vanished permanently. Available data do not seem to point to a disappearance of the main channels that contribute to transmitting crises across countries. Moreover, anticipation of the Argentine crisis by international investors may help explain the recent absence of contagion
Physical Description:24 p.
ISBN:1451946066
9781451946062