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Contagion: Monsoonal Effects, Spillovers, and Jumps Between Multiple Equilibria

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  • Mr. Paul R Masson

Abstract

Several 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.

Suggested Citation

  • Mr. Paul R Masson, 1998. "Contagion: Monsoonal Effects, Spillovers, and Jumps Between Multiple Equilibria," IMF Working Papers 1998/142, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1998/142
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