Pure Contagion and Investors Shifting Risk Appetite: Analytical Issues and Empirical Evidence

This paper discusses a ""pure"" form of financial contagion, unrelated to economic fundamentals - investors'' shifting appetite for risk. It provides an analytical framework for identifying changes in investors'' risk appetite and discusses whether it is possi...

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1. Verfasser: Kumar, Manmohan S. (VerfasserIn)
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Washington, D.C International Monetary Fund 2001
Schriftenreihe:IMF Working Papers Working Paper No. 01/134
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Zusammenfassung:This paper discusses a ""pure"" form of financial contagion, unrelated to economic fundamentals - investors'' shifting appetite for risk. It provides an analytical framework for identifying changes in investors'' risk appetite and discusses whether it is possible to directly measure them in a way that can enable policy makers to differentiate between financial contagion and domestic fundamentals as the immediate source of a crisis. Daily measures of risk appetite are computed and their usefulness in predicting financial crises is assessed
Beschreibung:1 Online-Ressource (35 p)
ISBN:1451855605
9781451855609

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