AbstractSeveral concepts of contagion are distinguished. It is argued that only models that admit of multiple equilibria are capable of producing true contagion. A simple balance of payments model is presented to illustrate that phenomenon, and some back-of-the-envelope calculations assess its relevance to the coincidence of emerging market crises in 1994–95 and in 1997.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 98/142.
Date of creation: 01 Sep 1998
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