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Currency Market Contagion In The Asia-Pacific Region

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Author Info
MARDI DUNGEY
RENEE FRY
VANCE L. MARTIN

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Abstract

During the East Asian currency crisis of 1997-98 the potential transmission of the crisis to developed markets such as Japan, Australia and New Zealand, was of considerable policy concern. Potential channels consist of anticipated movements stemming from common factors, spillovers and contagion. The empirical results show that the transmission of volatility in the East-Asian currency markets to the developed markets in the region is not due to contagion, but rather attributed to common world factors. Spillovers have a minor role in the case of Japan and to a lesser degree, Australia. Copyright Blackwell Publishing Ltd/University of Adelaide and Flinders University of South Australia 2004.

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-8454.2004.00238.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Australian Economic Papers.

Volume (Year): 43 (2004)
Issue (Month): 4 (December)
Pages: 379-395
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Handle: RePEc:bla:ausecp:v:43:y:2004:i:4:p:379-395

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  1. Vanessa Mattiussi & Giulia Iori, 2006. "Currency Futures Volatility during the 1997 East Asian Crisis: An Application of Fourier Analysis," City University Economics Discussion Papers 06/09, Department of Economics, City University, London. [Downloadable!]
  2. Marie Brière & Ariane Chapelle & Ariane Szafarz, 2008. "No contagion, only globalization and flight to quality," Working Papers DULBEA 08-22.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  3. Diana Zhumabekova & Mardi Dungey, 2001. "Factor analysis of a model of stock market returns using simulation-based estimation techniques," Pacific Basin Working Paper Series 01-08, Federal Reserve Bank of San Francisco. [Downloadable!]
  4. Thomas J. Flavin & Ekaterini Panopoulou & Deren Unalmis, 2008. "On the stability of domestic financial market linkages in the presence of time-varying volatility," Economics, Finance and Accounting Department Working Paper Series n1981108.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth. [Downloadable!]
    Other versions:
  5. Thomas J. flavin & Ekaterini Panopoulou, 2008. "Detecting shift and pure contagion in East Asian equity markets: A Unified Approach," Economics, Finance and Accounting Department Working Paper Series n1890208.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth. [Downloadable!]
    Other versions:
  6. Mardi Dungey & Renee Fry & Vance Martin & Brenda González-Hermosillo, 2002. "International Contagion Effects from the Russian Crisis and the LTCM Near-Collapse," IMF Working Papers 02/74, International Monetary Fund. [Downloadable!]
  7. Thomas Flavin & Ekaterini Panopoulou, 2006. "Shift versus traditional contagion in Asian markets," The Institute for International Integration Studies Discussion Paper Series iiisdp176, IIIS. [Downloadable!]
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