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Measuring Contagion: Conceptual and Empirical Issues

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International Financial Contagion

Abstract

The 1990’s has been punctuated by a series of severe financial and currency crises: the Exchange Rate Mechanism (ERM) attacks of 1992; the Mexican peso collapse of 1994; the East Asian crisis of 1997; the Russian collapse of 1998; and the Brazilian devaluation of 1999. One striking characteristic of several of these crises was how an initial country-specific shock was rapidly transmitted to markets of very different sizes and structures around the globe. This has prompted a surge of interest in “contagion”.

The authors would like to thank Stijn Claessens, Rudiger Dombusch, and Yung Chul Park for organizing the conference “International Financial Contagion: How it Spreads and How it Can Be Stopped” for which this paper was written. Further thanks to the rapporteur, Holger Wolf, and conference participants for useful comments and suggestions.

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Author information

Authors and Affiliations

  1. Massachusetts Institute of Technology and NBER, USA

    Kristin Forbes & Roberto Rigobon

Authors
  1. Kristin Forbes
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  2. Roberto Rigobon
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Editor information

Editors and Affiliations

  1. The World Bank, USA

    Stijn Claessens

  2. Massachusetts Institute of Technology, USA

    Kristin J. Forbes

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© 2001 Springer Science+Business Media New York

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Forbes, K., Rigobon, R. (2001). Measuring Contagion: Conceptual and Empirical Issues . In: Claessens, S., Forbes, K.J. (eds) International Financial Contagion. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-3314-3_3

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  • DOI: https://doi.org/10.1007/978-1-4757-3314-3_3

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4419-4876-2

  • Online ISBN: 978-1-4757-3314-3

  • eBook Packages: Springer Book Archive

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