Working Paper No. 383 Contagion in financial networks

Financial Crisis Contagion and the OPEC Oil Market

The impact of the financial crisis on the OPEC oil market is important to us as an important member of OPEC and an oil-exporting country with an oil-dependent economy. This study examines four networks, pre-financial crisis, US financial crisis, European debt crisis and post-financial crisis, using the contagion index and complex network for the period 2007-1-2 to 26-8-2019. The results show th...

Can Social Contagion Help Global Health ‘Jump the Shark’?; Comment on “How to Facilitate Social Contagion?”

The instrumental use of social networks has become a central tenet of international health policy and advocacy since the Millennium project. In asking, ‘How to facilitate social contagion?’, Karl Blanchet of the London School of Hygiene and Tropical Medicine therefore reflects not only on the recent success, but also hints to growing challenges; the tactics of partnerships, alliances and platfo...

Pacific Basin Working Paper Series CONTAGION EFFECTS DURING THE ASIAN FINANCIAL CRISIS: SOME EVIDENCE FROM STOCK PRICE DATA

Contagion of Fire Sale on Security-Trader Network

This paper studies the contagion of fire sale across asset markets through the price effect. When a distressed trader liquidates her stock holding quickly, the fire sale will depress the asset price and other shareholders will incur mark-to-market losses. If the losses are large enough, these shareholders may also have to liquidate other assets they hold, and the liquidation can spread out and ...

Rethinking Financial Contagion

How, and to what extent, does an interconnected financial system endogenously amplify external shocks? This paper attempts to reconcile some apparently different views emerged after the 2008 crisis regarding the nature and the relevance of contagion in financial networks. We develop a common framework encompassing several network contagion models and show that, regardless of the shock distribut...