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Contagion Definition

investopedia.com

Contagion In Economics

Contagion, in financial terms, refers to the diffusion of economic booms, and can occur both domestically and globally. It is basically a spread of an economic crisis from one region to another, and spreads on an international level due to the global market interdependence.

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Developing countries and emerging markets are often more susceptible to be affected by a contagion, whereas large, established markets can weather them to a greater degree.

Periodic, global financial crises has been a staple of the economy for every decade since 1825, in one form or anothe...

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