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

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Manmohan S. Kumar ; Avinash Persaud (2001)
  • Subject: General, [Capital markets;Financial crisis;Foreign exchange;Risk aversion, contagion affects, financial crises, contagion, correlation, probability, currency crises, Financial Institutions and Services]

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 directl... View more
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