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Changing Vulnerability in Asia: Contagion and Systemic Risk

Publication | May 2019
Changing Vulnerability in Asia: Contagion and Systemic Risk

This paper shows how the international financial network has developed as Asia became an increasingly important market since the year 2000.

It tracks progress through the 1997–1998 Asian financial crisis, the 2008 global financial crisis, and the European debt crisis. The study shows that developed markets can act as a bridge for emerging markets to access the global financial network, overcoming the information asymmetry that exists between emerging markets and the global network. The authors recommend that financial regulators take caution in adopting network policies that could disproportionately benefit larger emerging markets.

Contents 

  • Introduction
  • Literature Review
  • Detecting Contagion and Vulnerability
  • Data and Stylized Facts
  • Results and Analysis
  • Implications
  • Conclusion