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Informational Contagion and the Entrepreneurial Production of Informational Remedies

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  • Mathieu Bédard

    ()
    (CERGAM-CAE, Aix-Marseille Université)

Abstract

This article reassess informational financial contagion theory relevant to systemic risk in banking in the light of a coordination problem approach to economics, and then proceed to analyze and comment some related types of systemic risk policies. Typically, policies to limit or contain informational contagion place too much emphasis on disclosed explicit information search and neglect the circumstantial, ecological knowledge surrogates, stemming from the actions taken by market participants during informational contagion crises.

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File URL: http://junon.u-3mrs.fr/afa10w21/RePEc/cgm/wpaper/DR_96_1213.Bedard.pdf
File Function: Second version, 2013
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Bibliographic Info

Paper provided by Aix-Marseille Université, CERGAM in its series CAE Working Papers with number 96.

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Length: 34 pages
Date of creation: Feb 2012
Date of revision: Mar 2013
Handle: RePEc:cgm:wpaper:96

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Keywords: Financial Contagion; Bank runs; Information; Uncertainty;

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