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Phenomenon of Financial Contagion on the Crisis Framework, The

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Global Encyclopedia of Public Administration, Public Policy, and Governance

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Synonyms

Contagion, Shock transmission

Definition

Contagion remains a phenomenon not strictly defined. It is associated with shock transmission by direct contractual relations and therefore linked to interdependency. Besides, indirect relations may explain the contagion phenomenon. Thus, they must be taken into consideration by market makers and public policymakers.

Introduction

Although the subject of contagion is very much addressed by the research, since the Asian crisis in 1997, it becomes more topical following the sovereign crisis of the eurozone. It is in this spirit that this research deals with the theoretical evolution of the phenomenon of contagion in a more current crisis context.

It elucidates the theoretical complexity of detecting a precise definition of the contagion phenomenon that explains the multiplicity of currents presented by previous studies.

The Noncontingent Theory

The noncontingent theory of crisis transmission is based on the notion of interdependence. The...

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Author information

Authors and Affiliations

  1. Higher Institute of Management of Tunis, Tunis, Tunisia

    Souhir Amri Amamou & Sleheddine Hellara

Authors
  1. Souhir Amri Amamou
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  2. Sleheddine Hellara
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Editor information

Editors and Affiliations

  1. Florida Atlantic University, Boca Raton, FL, USA

    Ali Farazmand

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Amri Amamou, S., Hellara, S. (2022). Phenomenon of Financial Contagion on the Crisis Framework, The. In: Farazmand, A. (eds) Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer, Cham. https://doi.org/10.1007/978-3-030-66252-3_4250

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